ike invests $7,660 in an account paying 7.27% simple interest annually. how much interest has ike gained…

ike invests $7,660 in an account paying 7.27% simple interest annually. how much interest has ike gained after four years?\na. $222.75\nb. $2,227.53\nc. $1,392.20\nd. $13,922.05

ike invests $7,660 in an account paying 7.27% simple interest annually. how much interest has ike gained after four years?\na. $222.75\nb. $2,227.53\nc. $1,392.20\nd. $13,922.05

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 $r = 7.27%=0.0727$. The principal amount $P=$7660$ and the time $t = 4$ years.

Step3: Substitute the values into the formula

$I=Prt=7660\times0.0727\times4$. First, calculate $7660\times0.0727 = 7660\times\frac{727}{10000}=556.882$. Then, $556.882\times4 = 2227.528\approx2227.53$.

Answer:

B. $$2,227.53$