Find the simple interest and the final value of the deposit that earns the given rate for the indicated length of time. Round your answers to the nearest cent.
$8439 earning 8% for 1.4 years
?
Use this formula and plug in the numbers.
Interest = principal * rate * time
Note: Use 0.08 for 8%
Jacqueline, etc. -- please use the same name for your posts.
945.168 and round to nearest cent. is 950?
Your arithmetic is correct. Your rounding is wrong.
945.168 is nine hundred, forty-five, and 168 thousandths.
945.168 rounds to $945.17.
To find the simple interest, we use the formula:
Simple Interest = Principal * Rate * Time
Where:
Principal = $8439 (initial deposit)
Rate = 8% (interest rate)
Time = 1.4 years (length of time)
First, we convert the interest rate from a percentage to a decimal by dividing it by 100.
8% = 8/100 = 0.08
Now, we can calculate the simple interest:
Simple Interest = $8439 * 0.08 * 1.4
Next, we calculate the final value of the deposit by adding the simple interest to the initial deposit:
Final Value = Principal + Simple Interest
Final Value = $8439 + Simple Interest
Now, let's perform the calculations:
Simple Interest = $8439 * 0.08 * 1.4 = $939.24
Final Value = $8439 + $939.24
Final Value ≈ $9378.24
Therefore, the simple interest is approximately $939.24 and the final value of the deposit, rounded to the nearest cent, is approximately $9378.24.