Final answer:
To calculate the simple interest earned on a $970 investment at a 14% interest rate for one year, use the formula Interest = Principal × Rate × Time. This results in $135.80 of interest.
Step-by-step explanation:
If $970 is invested for one year at 14% simple interest, the amount of interest earned can be calculated using the simple interest formula: Interest = Principal × Rate × Time. For your investment, the principal (P) is $970, the rate (R) is 14% or 0.14 when expressed as a decimal, and the time (T) is 1 year.
The calculation is as follows:
Interest = $970 × 0.14 × 1
Interest = $135.80
The simple interest earned on the investment would be $135.80. Remember that the actual amount of money you will have after one year will be the initial investment plus the earned interest.