Abbi invested $1,200 in a certificate of deposit with a simple interest rate of 2%. Find the interest earned in 9 years. Then find the total of principal plus interest.
I = prt
I = 1200 * 0.02 * 9
I = 216
1200 + 216 = 1416
To find the interest earned in 9 years, you can use the formula for simple interest:
Interest = Principal × Interest Rate × Time
First, let's calculate the interest earned in 9 years:
Principal = $1,200
Interest Rate = 2% (which can be written as 0.02)
Time = 9 years
Interest = $1,200 × 0.02 × 9 = $216
So, the interest earned over 9 years is $216.
To find the total of the principal plus interest, you simply add the interest earned to the principal amount:
Total = Principal + Interest = $1,200 + $216 = $1,416
Therefore, the total amount after 9 years, including the principal and interest, is $1,416.