3 find the interest earned: $1,000 for 40 years at 8% annual simple interest
3 find the interest earned: $1,000 for 40 years at 8% annual simple interest
Answer
Explanation:
Step1: Identify the simple - interest formula
The formula for simple interest is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.
Step2: Convert the percentage to a decimal
The annual interest rate $r = 8%=0.08$. The principal amount $P=$1000$ and the time $t = 40$ years.
Step3: Substitute the values into the formula
$I=Prt=1000\times0.08\times40$.
Step4: Calculate the interest
$1000\times0.08\times40 = 80\times40=3200$.
Answer:
$3200$