what is the interest earned after 1 year in a savings account with an initial investment of $8,000 and a…

what is the interest earned after 1 year in a savings account with an initial investment of $8,000 and a 2.5% simple interest rate? interest = $?

what is the interest earned after 1 year in a savings account with an initial investment of $8,000 and a 2.5% simple interest rate? interest = $?

Answer

Explanation:

Step1: Write 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

Given (r = 2.5%=\frac{2.5}{100}=0.025), (P=$8000), and (t = 1) year.

Step3: Substitute the values into the formula

Substitute (P = 8000), (r=0.025), and (t = 1) into (I=Prt). Then (I=(8000)\times(0.025)\times(1)).

Step4: Calculate the interest

(I = 8000\times0.025=200)

Answer:

(200)