Question

Suppose a principal amount of $2079 were invested into a simple interest account that pays an annual rate of 2.31% then the amount of interest earned at the end of 14 years would be how much

Answer 1

Answer:

The amount of interest earned at the end of 14 years would be $672.3486

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

$E = P*I*t$

In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

In this problem, we have that:

$P = 2079, I = 0.0231, t = 14$

So

$E = 2079*0.0231*14 = 672.3486$

The amount of interest earned at the end of 14 years would be $672.3486