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Andrej [43]
3 years ago
10

Don invests $12,000 into an account that pays 8.25% simple interest. How much interest does his account earn after 4 years?

Mathematics
1 answer:
pshichka [43]3 years ago
5 0

Answer:

$3960

Step-by-step explanation:

Given parameters:

Principal = $12,000

Simple interest  = 8.25%

Time  = 4yrs

Unknown:

Interest earned  = ?

Solution:

To solve this problem, we have to use the simple interest formula shown below:

 Simple interest  = \frac{PRT}{100}

P is the principal

R is the rate

T is the time

Now insert the parameters and solve;

  Simple interest  = \frac{12000 x 8.25 x 4}{100}   = $3960

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