Martin invested $6,500 in a bank at a simple interest rate of 6.5%. How much interest would he receive after 4 years? Use I=PRT
I=PRT
I - 6,500 * 0.065 * 4
To find the amount of interest Martin would receive after 4 years, we can use the simple interest formula:
I = P * R * T
Where:
I = Interest
P = Principal amount (initial investment)
R = Interest rate (as a decimal)
T = Time period in years
In this case, Martin invested $6,500 at an interest rate of 6.5% (or 0.065 as a decimal) for 4 years. Let's substitute these values into the formula:
I = 6500 * 0.065 * 4
To find the answer, let's calculate:
I = 1690
Therefore, Martin would receive $1,690 in interest after 4 years.