Example: Solving for Simple Interest Earned on Susana's Investment
Apply the problem-solving strategy to find the simple interest earned given the principal, rate of interest, and time.
Problem: Susana invested a principal of $36,000 in her bank account that earned simple interest at an interest rate of . How much interest did she earn in years?
- Identify what to find: the simple interest.
- Name the unknown: Let = interest.
- Translate into an equation using the simple interest formula . Given , , and :
- Solve the equation:
- Answer: The interest Susana earned is $7,020.
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Example: Solving for Simple Interest Earned on Nathaly's Deposit
Example: Solving for Simple Interest Earned on Susana's Investment
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Learn After
As a financial clerk, you are tasked with calculating the simple interest earned on a company's initial capital investment over a set period. Arrange the steps of the standard problem-solving strategy used to determine the simple interest in the correct order.
A financial clerk is verifying the interest earned on Susana's bank account, which had a principal investment of $36,000 at a simple interest rate of $6.5% for $3 years. According to the standard problem-solving strategy for the formula , which equation correctly shows the values substituted into the formula to find the interest ()?
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