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Rzqust [24]
3 years ago
12

A $20,000 investment earned a simple interest rate of 5.4%. How much interest was earned in one year?

Mathematics
1 answer:
ICE Princess25 [194]3 years ago
6 0

Answer:

The interest earned in a year was $1080.

Step-by-step explanation:

Since the money was invested at a simple interest rate, then the amount earned in one year is given by the following formula:

M = C*r*t

Where M is the amount earned, C is the amount invested, r is the rate of interest and t is the time elapsed. Applying the data from the problem, we have?

M = 20000*(5.4/100)*1

M = 20000*0.054

M = 1080

The interest earned in a year was $1080.

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3 0
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Splitting investments. Joan had $3,000 to invest. She invested part of it in an investment paying 8% and the remainder in an inv
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Answer:

Step-by-step explanation:

From the given information:

Let assume that the invested amount in the investment paying 8% interest is a

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= $(3000-a)

Income earned on $a that is being invested in 8% interest = $a × 8/100 = $0.08a

Income earned from $(3000-a)  in the 10% investment is:

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