If ​$23,000 is invested for 1 yr at 2​% simple​ interest, how much interest is​ earned?

Answer 1

To calculate the interest earned on an investment with simple interest, you can use the formula:

\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]

Where:

• Principal = amount invested (in this case, $23,000)
• Rate = annual interest rate (2% or 0.02)
• Time = duration of the investment in years (1 year)

Now, substituting the values into the formula:

\[ \text{Interest} = 23000 \times 0.02 \times 1 \]

Calculating this:

\[ \text{Interest} = 23000 \times 0.02 = 460 \]

Thus, the interest earned is $460.