Question

Part A
Diego deposited
$
10
,
000
$10,000 for
4
4 years at a rate of
6
%
6% simple interest.
​Find the amount of interest Diego earned after four years.

Answer 1

To calculate the simple interest earned on Diego's deposit, we can use the simple interest formula:

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

Where:
- \( P \) = principal amount (initial deposit)
- \( r \) = annual interest rate (as a decimal)
- \( t \) = time in years

Given:
- \( P = 10,000 \)
- \( r = 6\% = 0.06 \)
- \( t = 4 \)

Now plug in the values:

\[
\text{Interest} = 10,000 \times 0.06 \times 4
\]

Calculating this step-by-step:

1. Calculate \( 0.06 \times 4 = 0.24 \)
2. Then multiply by \( 10,000 \):

\[
\text{Interest} = 10,000 \times 0.24 = 2,400
\]

Thus, the amount of interest Diego earned after four years is **$2,400**.