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.
