Question

Find the simple interest earned if you invest $545 in a savings account that earns 3.25% for two years

Answer 1

$\boxed{I=\ 35.43}$

Explanation:

The simple interest formula is:

$A=P(1+rt) \\ \\ \\ A: \ is \ the \ Final \ Investment \Value \\ \\ P: \ is \ the \ Principal \ amount \ of \ money \ to \ be \ invested \\ \\ r: \ is \ the \ rate \ of \ interest \\ \\ t: \ is \ \ Number \ of \ Time \ Periods$

First, converting r percent to r a decimal

$r = 3.25\%=\frac{3.25}{100}=0.0325 \ per \ year$

Solving our equation:

$A=545(1+0.0325\times 2) \\ \\ A=580.425 \\ \\ Rounded \ to \ the \ nearest \ cent: \\ \\ A=\ 580.43$

So the interest earned if you invest $545 in a savings account that earns 3.25% for two years can be calculated as:

$I:Interest \\ \\ \\ I=A-P \\ \\ I=580.43-545 \\ \\ \boxed{I=\ 35.43}$

Learn more:

Simple interest: brainly.com/question/11911443

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