Question

Carleen deposited $16,400 in a bank account with interest rate 3.9%. How much interest was earned in 8 years?

Short answer

The interest earned in 8 years will be $5116.8

Step-by-step solution

Step. 1 Given Information

We have Principle amount $p=16,400$

rate of interest $r=3.9\%=0.039$

Time in years$t=8years$

Step. 2 Formula and calculation for simple interest

As we know the formula to find the simple interest is:

$$\begin{gathered} I=prt, \\ wherepisindollars,ristherateandtistimeinyears. \end{gathered}$$

So, putting the values in the formula we get the total interest earned which is as follows:

$$\begin{gathered} I=prt \\ I=16400\times 0.039\times 8 \\ I=5116.8 \end{gathered}$$

So, the total interest earned is $5116.8