Find the interest if $ 9,000 is invested at an annual simple interest rate of 8 % for 3 years. Use the formula I = P × R × T , where I is the interest earnings, P is the principal, R is the annual rate and T is the time, expressed in years.
(a) $ 216,000 (b) $ 4,216.00 (c) $ 2,160 (d) $ 21.60 (e) $ 196.00
I = P × R × T
I = 9,000 * 0.08 * 3
I = ?
To find the interest earned on an investment, we can use the formula I = P * R * T, where:
- I is the interest earnings
- P is the principal (initial amount invested)
- R is the annual interest rate
- T is the time in years
In this case, we are given:
- P = $9,000 (the principal)
- R = 8% (or 0.08 as a decimal, the annual interest rate)
- T = 3 years (the time)
Let's plug these values into the formula:
I = 9,000 * 0.08 * 3
I = 2,160
Therefore, the interest earned on the investment is $2,160.
The correct answer is (c) $2,160.