Question

Tina invests $17,950 in an account paying 2.59% simple interest annually. How much interest has Tina
gained after eight years?

Answer 1

Answer:

$I=\ 3,719.24$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=8\ years\\ P=\ 17,950\\r=0.0259$

substitute in the formula above

$I=17,950(0.0259*8)$

$I=\ 3,719.24$