Calculate the amount of interest you’ll have at the end of the indicated period. You invest $1000 in an account that pays simple interest of 8% for 3 years.
To calculate the amount of interest earned on a simple interest investment, you can use the formula:
Interest = Principal × Rate × Time
Given:
Principal (P) = $1000
Rate (R) = 8% = 0.08 (convert from percentage to decimal)
Time (T) = 3 years
Plugging in the values into the formula:
Interest = $1000 × 0.08 × 3
= $240
Therefore, you will have $240 of interest at the end of the 3-year period.
To calculate the amount of interest earned on a simple interest investment, you can use the formula:
Interest = Principal × Rate × Time
Given that you invested $1000 with an interest rate of 8% for 3 years, we can substitute these values into the formula to determine the interest earned.
Interest = $1000 × 0.08 × 3
Calculating the equation:
Interest = $240
Therefore, you will earn $240 in interest at the end of the 3-year period.
To calculate the interest earned at the end of the indicated period, you can use the simple interest formula:
Simple Interest = Principal * Rate * Time
Where:
- Principal is the initial investment amount
- Rate is the interest rate per period
- Time is the number of periods
In this case, the principal (initial investment) is $1000, the interest rate is 8%, and the time period is 3 years.
Plugging these values into the formula, we get:
Simple Interest = $1000 * 0.08 * 3
Calculating the equation, we find:
Simple Interest = $240
Therefore, at the end of 3 years, you will have earned $240 in interest on your initial investment of $1000.