Question

Evelyn has $25,000 to invest in an account that offers a simple interest of 12%. How much interest will she have earned after 10 years?

Answer 1

Answer:

$30,000

Step-by-step explanation:

To solve this problem, lets use the simple interest formula:

$I = Prt$

P = principal amount

r = interest rate (decimal form)

t = time

First, change 12% into its decimal form:

12% -> $\frac{12}{100}$ -> 0.12

Next, plug in the values in the equation:

$I=25,000(0.12)(10)$

$I=30,000$

The interest earned after 10 years is $30,000