Tamara invests $30,000 in an account earning 7% interest per year over the next 4 years.
How much (simple) interest will her investment earn in total?
I = Po*r*t = 30000*0.07*4 = $8400.
To calculate the simple interest, you need to multiply the principal amount (the initial investment) by the interest rate and the number of years. The formula is:
Simple Interest = Principal x Interest Rate x Time
In this case, Tamara invested $30,000 and the interest rate is 7% per year. The investment period is 4 years. Let's calculate her total interest.
Principal = $30,000
Interest Rate = 7% = 0.07 (in decimal form)
Time = 4 years
Simple Interest = $30,000 x 0.07 x 4 = $8,400
Therefore, Tamara's investment will earn a total of $8,400 in simple interest over the next 4 years.