Abbi invested $1,500 in a certificate of deposit with a simple interest rate of 4%. Find the interest earned in 6 years. Then find the total of principal plus interest.
To find the interest earned in 6 years, you can use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, the principal (P) is $1,500 and the rate (R) is 4%. The time (T) is 6 years.
Substituting the values into the formula, we get:
Interest = $1,500 x 0.04 x 6
Simplifying the equation:
Interest = $360
Therefore, the interest earned in 6 years is $360.
To find the total of principal plus interest, you can simply add the principal to the interest amount:
Total = Principal + Interest
Substituting the values:
Total = $1,500 + $360
Total = $1,860
Therefore, the total of principal plus interest after 6 years is $1,860.