Abbi invested $1,000 in a certificate of deposit with a simple interest rate of 4%. Find the interest earned in 8 years. Then find the total of principal plus interest.
$368.57; $1,368.57
$40.00; $1,040.00
$32,000.00; $33,000.00
$320.00; $1,320.00
To find the interest earned in 8 years, we first calculate the interest using the formula: Interest = Principal x Rate x Time.
Interest = $1,000 x 0.04 x 8 = $320.
Therefore, the interest earned is $320.
To find the total of principal plus interest, we add the principal amount to the interest earned.
Total = $1,000 + $320 = $1,320.
Therefore, the total of principal plus interest is $1,320.
Therefore, the correct answer is:
$320.00; $1,320.00.