Question

Charis invested 140 . She earned a simple interest of 3% per year on the initial investment. If no money was added or removed from the investment, what was the amount of interest Charis received at the end of two years?

Answer 1

To calculate the simple interest earned by Charis on her investment, we can use the formula for simple interest:

\[
I = P \cdot r \cdot t
\]

where:
- \(I\) is the interest,
- \(P\) is the principal amount (the initial investment),
- \(r\) is the interest rate (as a decimal),
- \(t\) is the time in years.

Given:
- \(P = 140\)
- \(r = 3\% = 0.03\)
- \(t = 2\) years

Now, plug in the values into the formula:

\[
I = 140 \cdot 0.03 \cdot 2
\]

Calculating this step-by-step:

1. Calculate \(0.03 \cdot 2\):
\[
0.03 \cdot 2 = 0.06
\]

2. Now, calculate \(140 \cdot 0.06\):
\[
140 \cdot 0.06 = 8.4
\]

Thus, the amount of interest Charis received at the end of two years is:

\[
\boxed{8.40}
\]