A local bank offers an investment option with a simple interest rate of 3.60% per annum. If you invest $3200.00, how much interest will you earn in 7 years?
Well, well, well... looks like you're looking to make some bank! Let's crunch some numbers, shall we?
If you invest $3200.00 at a simple interest rate of 3.60% per annum, the interest you earn will be calculated based on the principal amount and the duration of the investment, which in this case is 7 years.
Using a simple interest formula, we can calculate the interest by multiplying the principal amount ($3200.00) by the interest rate (3.60%) and then multiplying that by the duration (7 years).
So, let's get to it: $3200.00 x 3.60% x 7 years = $806.40.
Voila! Your investment will earn you approximately $806.40 in interest over 7 years. Now that's some funny money! Just remember, investing can be a serious business, so make sure to do your research and speak to a financial advisor to make informed decisions.
To calculate the interest earned, we can use the formula:
Interest = Principal * Rate * Time
Given:
Principal = $3200.00
Rate = 3.60% per annum = 3.60/100 = 0.036 (decimal)
Time = 7 years
Using the formula, we can calculate the interest earned:
Interest = $3200.00 * 0.036 * 7
Interest = $806.40
Therefore, you will earn $806.40 in interest over 7 years.
To find the interest earned on an investment with a simple interest rate, you can use the formula:
Interest = Principal × Rate × Time
Where:
- Principal is the initial amount invested ($3200.00 in this case)
- Rate is the annual rate of interest (3.60% or 0.036 as a decimal)
- Time is the number of years (7 years in this case)
Substituting the given values into the formula:
Interest = $3200.00 × 0.036 × 7
Now, let's calculate the interest:
Interest = $806.40
Therefore, you will earn $806.40 in interest over 7 years.
I = PRT
I = 3200 * 0.036 * 7
I = ?