Question

Use the simple interest formula, I = prt, to find the simple interest:

Julia invested $4,000 in a mutual fund with the simple interest rate of 3.5% per year. How much interest would she earn after 2 years?

(1 point)
Responses

$140

$140

$280

$280

$1,400

$1,400

$2,800

Answer 1

To calculate the simple interest using the formula \( I = prt \), we need to identify the variables:

- \( p = 4000 \) (the principal amount)
- \( r = 0.035 \) (the interest rate as a decimal, which is 3.5%)
- \( t = 2 \) (the time in years)

Now, substitute these values into the formula:

\[
I = 4000 \times 0.035 \times 2
\]

Calculating this step by step:

\[
I = 4000 \times 0.035 = 140
\]

Then, multiply by the time:

\[
I = 140 \times 2 = 280
\]

Therefore, the simple interest Julia would earn after 2 years is **$280**.

So the answer is:

**$280**