Question

Find the amount of simple interest earned in one year on an account that has an interest rate of 3.2% and a principal of $250.

Answer 1

Answer:

$I=\ 8$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=1\ year\\ P=\ 250\\r=3.2\%=3.2/100=0.032$

substitute in the formula above

$I=250(0.032*1)$

$I=\ 8$