Ben deposited $6,500 in a simple interest account that pays 2.8% interest. If Ben leaves the money in the account for 12 years, how much interest will he earn?

Mathematics · College · Thu Feb 04 2021

Answered on

Given:

Principal amount ( P ) = $6,500

Interest rate ( r ) = 2.8% or 0.028 (divided by 100)

Term ( t ) = 12

Find the future value.

Formula for Simple Interest

I = Prt

Solution:

Substitute the given values of r,t and P to the formula for simple interest.

I = Prt

I = ($6500)(0.028)(12)

I = $2,184

Final answer:

The interest earned after 12 years is $2,184.

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