gina invests $1,677 in an account paying 8.61% simple interest annually. how much interest has gina gained…

gina invests $1,677 in an account paying 8.61% simple interest annually. how much interest has gina gained after six years? a. $668.65 b. $240.65 c. $866.34 d. $2,543.34

gina invests $1,677 in an account paying 8.61% simple interest annually. how much interest has gina gained after six years? a. $668.65 b. $240.65 c. $866.34 d. $2,543.34

Answer

Explanation:

Step1: Identify the simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ 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 $r = 8.61%=0.0861$. The principal amount $P=$1677$ and the time $t = 6$ years.

Step3: Substitute the values into the formula

$I=Prt=1677\times0.0861\times6$. First, calculate $1677\times0.0861 = 144.3897$. Then, $144.3897\times6=866.3382\approx866.34$.

Answer:

c. $$866.34$