Question

Find the simple interest earned after 2 years on $8,950 at an interest rate of 3.24%.


$46.27


$579.96


$89.50


$73.33

Answer 1

To calculate simple interest, you can use the formula:

\[
\text{Simple Interest} = P \times r \times t
\]

Where:
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the interest rate (as a decimal),
- \( t \) is the time in years.

Given:
- \( P = 8,950 \) dollars
- \( r = 3.24\% = \frac{3.24}{100} = 0.0324 \)
- \( t = 2 \) years

Now we can plug in the values:

\[
\text{Simple Interest} = 8950 \times 0.0324 \times 2
\]

First, calculate \( 8950 \times 0.0324 \):

\[
8950 \times 0.0324 = 289.68
\]

Now multiply that by 2:

\[
\text{Simple Interest} = 289.68 \times 2 = 579.36
\]

So, the simple interest earned after 2 years is approximately $579.36.

However, checking the provided options, it appears the closest (but not exact) is:

\[
\text{Simple Interest} \approx \$579.96
\]

So the answer is:

**$579.96**