Ms. Caswell deposits $450 into an account earning 8% interest per year. How much simple interest is earned after 4 years?
Please explain.. I'm supposed to show work =]
thank you!
the simple interest formula is
Interest = principal x rate x time
= 450(.08)(4)
= ....
To calculate the simple interest earned after 4 years, we need to use the formula:
Simple Interest = Principal x Rate x Time
Given:
Principal (amount deposited) = $450
Rate of interest = 8% per year
Time = 4 years
Let's plug the values into the formula and solve for the simple interest:
Simple Interest = $450 x 0.08 x 4
First, calculate the rate:
Rate = 8% = 8/100 = 0.08
Now, multiply the principal, rate, and time:
Simple Interest = $450 x 0.08 x 4
Simplifying the equation:
Simple Interest = $144
Therefore, Ms. Caswell will earn $144 as simple interest after 4 years.
To find the simple interest earned after 4 years, we can use the formula:
Simple Interest = Principal x Rate x Time
Here:
Principal = $450
Rate = 8% or 0.08 (since it is given in the form of a decimal)
Time = 4 years
Substituting these values into the formula, we have:
Simple Interest = $450 x 0.08 x 4
Now, we can calculate it step by step:
Step 1: Multiply the Principal and the Rate: $450 x 0.08 = $36
Step 2: Multiply the result by the Time: $36 x 4 = $144
Therefore, the simple interest earned after 4 years is $144.