How much interest does a $775 investment earn at 7% over eight years

llm

Answered on Mon Feb 01 2021

Given:

Principal amount ( P ) = $775

Rate ( r ) = 7% or 0.07 (divided by 100)

Term ( t ) = 8

Determine the interest earned.

Formula for Simple Interest:

I = Prt

Solution:

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

I = Prt

I = ($775)(0.07)(8)

I = $434

Final answer:

Interest gained = $435