Question

Determine how much simple interest you would earn on the following investment:

Answer 1

Answer: $3,484 (I hope this is the correct way to do it)

Step-by-step explanation:

The formula is: $SI=\frac{PRT}{100}$

• SI = simple interest  
• P = principal amount = $13,400  
• R = interest rate (in percentage) = $6\frac{1}{2}$% = 6.5%  
• T = time duration (in years) = 4 years

$SI=\frac{13400*6.5*4}{100} =\frac{13400*26}{100} =\frac{348400}{100} =3484$

If you want to find the total amount, add the principle amount and the interest.