QuestionJuly 20, 2025

Joy invests 10,000 into an account at an annual rate of 0.35% simple interest for 24 months. 1) What is the Principal in this scenario? 0.35% 10,000 2 0.0035 2) What is the interest rate for this account? 0.35% 10,000 0.0035 2 3) What number do you use to represent the interest rate in the simple interest formula? 0.35% 0.0035 10,000 2 4) What is the length of time of this investment, in years? 2 10,000 0.35% 0.0035 5) Calculate the simple interest earned on this account.

Joy invests 10,000 into an account at an annual rate of 0.35% simple interest for 24 months. 1) What is the Principal in this scenario? 0.35% 10,000 2 0.0035 2) What is the interest rate for this account? 0.35% 10,000 0.0035 2 3) What number do you use to represent the interest rate in the simple interest formula? 0.35% 0.0035 10,000 2 4) What is the length of time of this investment, in years? 2 10,000 0.35% 0.0035 5) Calculate the simple interest earned on this account.
Joy invests 10,000 into an account at an annual rate of 0.35%  simple interest for 24 months.
1) What is the Principal in this scenario?
0.35% 
 10,000
2
0.0035
2) What is the interest rate for this account?
0.35% 
 10,000
0.0035
2
3) What number do you use to represent the interest rate in the simple interest formula?
0.35% 
0.0035
 10,000
2
4) What is the length of time of this investment, in years?
2
 10,000
0.35% 
0.0035
5) Calculate the simple interest earned on this account.

Solution
4.3(272 votes)

Answer

The simple interest earned is \ 70. Explanation 1. Identify the Principal The principal is the initial amount invested, which is \ 10,000. 2. Determine the Interest Rate The interest rate given is 0.35\%. Convert it to a decimal for calculations: 0.35\% = 0.0035. 3. Represent the Interest Rate in Formula Use 0.0035 as the interest rate in the simple interest formula. 4. Convert Time to Years The investment period is 24 months, which is equivalent to \frac{24}{12} = 2 years. 5. Calculate Simple Interest Use the formula for simple interest: **I = P \times r \times t**. Substitute the values: I = 10000 \times 0.0035 \times 2.

Explanation

1. Identify the Principal<br /> The principal is the initial amount invested, which is $\$ 10,000$.<br /><br />2. Determine the Interest Rate<br /> The interest rate given is $0.35\%$. Convert it to a decimal for calculations: $0.35\% = 0.0035$.<br /><br />3. Represent the Interest Rate in Formula<br /> Use $0.0035$ as the interest rate in the simple interest formula.<br /><br />4. Convert Time to Years<br /> The investment period is 24 months, which is equivalent to $\frac{24}{12} = 2$ years.<br /><br />5. Calculate Simple Interest<br /> Use the formula for simple interest: **$I = P \times r \times t$**.<br /> Substitute the values: $I = 10000 \times 0.0035 \times 2$.
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