Alright. The formula for simple interest is prt, where p = principal (initial amount), r = rate (interest rate) and t = time (could be in months or years). So we know that $2,000 is invested in a savings plan. The interest rate is 5.75% and we are looking for the amount of interest in 10 years. We will multiply $2,000 by 5.75% (0.0575). 2,000 * 0.0575 is 115. That's $115 earned in 1 year. Now, multiply that number by 10 to find the amount of interest earned, because we are looking for the amount after 10 years. 115 * 10 is 1,150. There. Mr. Rodriguez will earn $1,150 in interest in 10 years.
Mr. Rodriguez invest *$2,000 in a savings plan the savings account pays an annual interest<span> **rate of 5.75 how much will Mr. Rodriguez earn if he leave his money in the savings plan for ***10 years?</span>
The bolded parts have a certain number of stars before it. That correlates with the below:
The equation is I = P * R * T
I = interet
* P = pay
**R = rate
***T = time (measured in years)
The pay is $2000
The rate is 5.75%
The time is 10 years.
You need to convert the rate into a decimal.
5.75% = 0.0575
2000 * 0.0575 * 10 = 1150
The answer is $1150
After 10 years, Mr. Rodriguez will have earned $1,150
