Evelyn has $25,000 to invest in an account that offers a simple interest of 12%. How much interest will she have earned after 10 years?

Question

asked Feb 13, 2021 132k views

1 Answer

Venugopal Madathil · Answer 1 · 2021-02-18T12:59:33+0000

Answer:

$30,000

Explanation:

To solve this problem, lets use the simple interest formula:

I = Prt

P = principal amount

r = interest rate (decimal form)

t = time

First, change 12% into its decimal form:

12% ->
(12)/(100) -> 0.12

Next, plug in the values in the equation:

I=25,000(0.12)(10)

I=30,000

The interest earned after 10 years is $30,000