Question

Gina invests $1,677 in an account paying 8.61% simple interest annually. How much interest has Gina gained after six years? a. $668.65 b. $240.65 c. $866.34 d. $2,543.34

Answer 1

Answer:

Option (c) is correct.

The interest gained by Gini in 6 years is $ 866.34

Step-by-step explanation:

Given: Gina invests $1,677 in an account paying 8.61% simple interest annually for 6 years.

We have to calculate the interest gained by Gina in 6 years.

Using formula for simple interest

$S.I.=\frac{P\times I\times T}{100}$

Where,

S.I = simple interest

P is principal

R is interest rate

T is time  

Given : P = $ 1677

R = 8.61%

T = 6 years

Substitute, we get,

$S.I.=\frac{1677\times 8.61\times 6}{100}$

Simplify, we get,

S.I. = $ 866.3382

Rounding off to nearest hundred  we get, Interest is $866.34

Thus, the interest gained by Gini in 6 years is $ 866.34