How much simple interest would you earn for 5 years at 7% with a beginning principal of $8,000.00
A. $2,800
B. $3,200
C. $3,300
D. $3,500
I couldn't figure it out and I need some help asap.
5(.07)(8000)=2800
I = PRT
I = 8,000 * 0.07 * 5
To calculate the simple interest earned on an investment, you can use the formula:
Simple Interest = (Principal) x (Rate) x (Time)
In this case, the principal is $8,000.00, the rate is 7% (or 0.07 as a decimal), and the time is 5 years.
Substituting these values into the formula, we get:
Simple Interest = $8,000.00 x 0.07 x 5
Calculating this, we find:
Simple Interest = $2,800.00
Therefore, the correct answer is A. $2,800.