Find the amount of interest earned on a 11-year investment of $4500 at a simple annual rate of 2.05%.

 

State your answer in terms of dollars rounded to the nearest cent, but do not include a $ sign or the word "dollars" with your response.

 

The formula to calculate simple interest is:

\[
I = P \times r \times t
\]

Where:
- $I$ is the interest earned,
- $P$ is the principal amount (\$4500),
- $r$ is the annual interest rate (2.05% or 0.0205),
- $t$ is the time in years (11 years).

Now, substituting the values:

\[
I = 4500 \times 0.0205 \times 11
\]

Let's calculate that.The amount of interest earned on the 11-year investment is **1014.75**.

Would you like a detailed breakdown of the calculation or have any other questions?

Here are 5 related questions:
1. How would the interest change if the investment period was increased by 5 years?
2. What would be the interest earned if the rate was 3% instead of 2.05%?
3. How do you calculate compound interest for the same investment?
4. What is the total amount (principal + interest) after 11 years?
5. How would the interest differ if the principal was $6000 instead of $4500?

**Tip:** Always ensure you convert percentage rates into decimal form when using formulas by dividing by 100.

Find the amount of interest earned on a 11-year investment of $4500 at a simple annual rate of 2.05%.

Learn how to calculate simple interest on a $4500 investment at an annual rate of 2.05% for 11 years. This problem covers the basic concepts of simple interest, percentages, and arithmetic operations. Suitable for students in Grades 6-8.

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