Abbi invested $1,000 in a certificate of deposit with a simple interest rate of 3%. Find the interest earned in 6 years. Then find the total of principal plus interest.
Interest = Principal amount * Rate * Time
= 1000 * 0.03 * 6
Total = 1000 + Interest
To find the interest earned, we can use the formula:
Interest = Principal × Rate × Time
Given that Abbi invested $1,000 with a simple interest rate of 3% and a time of 6 years, we can substitute these values into the formula:
Interest = $1,000 × 0.03 × 6
Calculating this gives us:
Interest = $1,000 × 0.18 = $180
So, the interest earned over 6 years is $180.
To find the total of principal plus interest, we simply add the interest earned to the principal:
Total = Principal + Interest
Total = $1,000 + $180 = $1,180
Therefore, the total of the principal plus interest is $1,180.