Question

Find the interest on a Principal Balance of $10,000 over the course of eight years with an interest rate of 5.5%. Do this for: Simple Interest.

Answer 1

10,000$(1+0.055*8)
This is the formula of simple interest

10,000+10,000(0.055*t)
10,000$(1+0.055*8)=14,400

Answer 2

Answer:

Simple Interest : $ 4400

Step-by-step explanation:

We want to calculate the interest on $ 10,000, at 5.5% interest rate per year, over a course of 8 years.

We can use the simple interest formula here, or :

I = P × r × t,

Where P is the principle amount, $ 10,000, r is the interest rate, 5.5% each year, or in decimal form 5.5 / 100 = 0.055. t is the time, 8 years.

Simple Interest : 10000 × 0.055 × 8 =  $4400.00

Then again the interest can be added to the principal amount ( $10,000 ) to receive some new amount after 8 years, which is $ 14,000. However the simple interest earned in 8 years at a rate of 5.5% should be $4400.