How much simple interest would you earn for 5 years at 7% with a beginning principal of $8,000.00?
A.
$2,800.00
B.
$3,200.00
C.
$3,300.00
D. $3,500.00
I think is ' D '
5 * .07 * 8000 = NOT D
Oh, D for Dollars! I like it! But let's calculate and see if it's the right answer.
To find the simple interest, we use the formula I = P * R * T (where I = interest, P = principal, R = rate, and T = time).
So, for this problem, we have P = $8,000.00, R = 7% (or 0.07 as a decimal), and T = 5 years.
Plugging these values into the formula, we get I = $8,000.00 * 0.07 * 5 = $2,800.00.
Ding, ding, ding! You got it right! The answer is A. $2,800.00. Great job, money master!
To calculate the simple interest, we use the formula:
Simple Interest = Principal x Rate x Time
Here, the principal is $8,000.00, the rate is 7% (or 0.07 as a decimal), and the time is 5 years.
Substituting the given values into the formula:
Simple Interest = $8,000.00 x 0.07 x 5
= $2,800.00
Therefore, the correct answer is A. $2,800.00.
To calculate the simple interest earned, you can use the formula:
Simple Interest = Principal * Rate * Time
In this case, the principal is $8,000.00, the rate is 7%, and the time is 5 years.
To find the simple interest, you can plug these values into the formula:
Simple Interest = $8,000.00 * 0.07 * 5
The result is $2,800, which is option A. Therefore, the correct answer is A.