Question

Mr. Young is offered an investment opportunity. Kyra says she will invest his money at a 6% simple interest rate over the next 7 years. Mr. Young decides to invest $3000. How much interest will he have earned when the investment matures? *

Answer 1

Answer:

$126

Step-by-step explanation:

Given that:

Investment is done as per Simple interest.

Principal = $3000

Time for which the investment is to done = 7 years

Rate of interest = 6%

To find:

Interest earned when the investment matures?

Solution:

Formula for Simple Interest :

$Simple\ Interest = \dfrac{PRT}{100}$

Where $P$ is the principal amount

$R$ is the Rate of Interest

$T$ is the time for which the investment is made

Putting the given values:

$Simple\ Interest = \dfrac{3000\times 6\times 7}{100}\\\Rightarrow Simple\ Interest = \dfrac{12600}{100}\\Simple\ Interest = \ 126$

Therefore, the answer is:

Interest earned is $126.