Question

How much simple interest is made on an investment of $800 for 7 years at 6%

Answer 1

$1,136

Explanation:

• The simple interest equation is A = P(1 + rt)
  
• P is the original amount invested (in this case, it is $800)
• r is the interest rate (in this case, it is 0.06 or 6%)

• t is the years (in this case, it is 7 years)
  
• From here, we can just plug in the values into the equation to get 800(1 + 0.06 x 7) = $1136