Answer:
$1,131.20 is the amount earned
Step-by-step explanation:
<u>Key skills needed: Simple Interest Formula, Operations ( +, - , x , / )</u>
1) To understand this problem, you need to know the simple interest formula.
A = P(1+rt)
A is the amount
P is the principal
R is the interest rate as a decimal
T is the time in years
2) The 1st thing we need to do is convert the interest rate into a decimal. We have 14%. To convert into decimal form, we divide it by a 100, or move the decimal 2 places to the left. This is 0.14 --> So r=0.14
3) Next we use the formula:
A = 1,010(1+ 0.14(8))
- We first do 0.14(8) which is 1.12 and then add it to the 1 value, so you will get --> A = 1,010(2.12)
- Multiply and you will get A = $2,141.20
- To find the interest earned, you subtract this by the original amount, so $2,141.20 - $1,010 which would be $1,131.20
This means $1,131.20 is your answer.
<em>Hope you understood and have a nice day!! :D</em>
