Tamara invests $30,000 in an account earning 7% interest per year over the next 4 years.
How much (simple) interest will her investment earn in total?
I = PRT
(Interest, I = Principal, P * Rate, R * Time, T
P = 30,000
R = 7% = 0.07
T = 4
I = 30,000 * 0.07 * 4
I = 2100 * 4
I = 8400
To calculate the simple interest earned on Tamara's investment, we can use the formula:
Simple Interest = Principal × Rate × Time
Where:
Principal = $30,000 (the initial investment)
Rate = 7% (annual interest rate)
Time = 4 years
Let's plug the values into the formula:
Simple Interest = 30,000 × 0.07 × 4
To calculate the interest, we can simplify the equation:
Simple Interest = 8,400
Therefore, Tamara's investment will earn a total of $8,400 in simple interest over the next 4 years.
the first thing you do is divide 30000 with 100:
300 = 1%
multiply it by seven to count the percentage
300x7 = 2100
multiply it by 4 to count the total via years
2100x4 = $8400
The answer is $8400 in total :)