Question

1. yolanda has a $640 bond that will pay her 8.25% interest. how much interest is earned?

Explanation:

Step1: Identify the formula for simple interest

The formula for simple interest is \( I = P \times r \times t \). Assuming the time \( t = 1 \) year (since it's a bond's annual interest unless stated otherwise), \( P=\$640 \), and \( r = 8.25\%=0.0825 \).

Step2: Substitute the values into the formula

Substitute \( P = 640 \), \( r=0.0825 \), and \( t = 1 \) into \( I = P\times r\times t \).
\( I=640\times0.0825\times1 \)

Step3: Calculate the product

First, calculate \( 640\times0.0825 \).
\( 640\times0.0825 = 640\times\frac{825}{10000}=\frac{640\times825}{10000}=\frac{528000}{10000} = 52.8 \)

Answer:

The interest earned is \(\$52.8\)