To calculate the amount of interest earned on a simple interest investment, you can use the formula:
Interest = Principal × Rate × Time
Given:
Principal (P) = $1000
Rate (R) = 8% = 0.08 (convert from percentage to decimal)
Time (T) = 3 years
Plugging in the values into the formula:
Interest = $1000 × 0.08 × 3
= $240
Therefore, you will have $240 of interest at the end of the 3-year period.
Calculate the amount of interest you’ll have at the end of the indicated period. You invest $1000 in an account that pays simple interest of 8% for 3 years.
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