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Solving for Simple Interest Earned on Areli's Investment
Apply the problem-solving strategy to find the simple interest earned given the principal, rate of interest, and time.
Problem: Areli invested a principal of $950 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:
- Check the result: Is $142.50 a reasonable amount of interest on $950? Yes.
- Answer: The interest is $142.50.
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