Find the amount of interest for a 16-year investment of $6500 at a simple annual rate of 2.40%.

 

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.

 

Find the amount of interest for a 16-year investment of $6500 at a simple annual rate of 2.40%.

 

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.

 



To find the amount of interest for a 16-year investment using simple interest, we use the formula:

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

where:
- $ I $ is the interest,
- $ P $ is the principal (initial investment),
- $ r $ is the annual interest rate (in decimal form),
- $ t $ is the time in years.

Given:
- $ P = 6500 $,
- $ r = 2.40\% = 0.024 $,
- $ t = 16 $ years.

Substitute the values into the formula:

\[
I = 6500 \times 0.024 \times 16
\]

Now, let's calculate the interest.The amount of interest for the 16-year investment is **2496.00**.

Would you like more details or have any further questions?

Here are 5 related questions to deepen your understanding:
1. How would the interest change if the investment period was 20 years instead of 16?
2. What would the interest be if the annual rate was 3%?
3. How is simple interest different from compound interest?
4. How can you calculate the total amount (principal + interest) at the end of the investment period?
5. If the principal was $7000 instead of $6500, how much interest would be earned over 16 years?

**Tip**: Always express percentages as decimals when using them in calculations (e.g., 2.4% becomes 0.024).

Find the amount of interest for a 16-year investment of $6500 at a simple annual rate of 2.40%. 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.

Learn how to calculate the simple interest for a 16-year investment of $6500 at an annual rate of 2.40%. This step-by-step guide explains the simple interest formula, how to convert percentages, and is suitable for students in Grades 9-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation