Calculate the simple interest earned. Round to the nearest cent.

*P* = $8100, *r* = 7%, *t* = 1 year

$ 

The formula for calculating simple interest is:

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

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

Given:
- $ P = 8100 $,
- $ r = 7\% = 0.07 $,
- $ t = 1 $ year.

Plugging in the values:

\[
I = 8100 \times 0.07 \times 1 = 567
\]

**Answer:** The simple interest earned is **$567.00**.

Would you like further details on any part of this calculation?

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Here are some related questions for practice:
1. What would the interest be if the rate was 5% instead?
2. How much total amount would you have after 2 years at 7%?
3. If the principal was $10,000, how much interest would be earned at 7% in one year?
4. What would the interest be if the time was extended to 3 years?
5. How is simple interest different from compound interest?

**Tip:** To convert a percentage to a decimal for calculations, divide by 100. For example, 7% becomes 0.07.

Calculate the simple interest earned. Round to the nearest cent. P = $8100, r = 7%, t = 1 year

Learn how to calculate simple interest for a principal of $8100 at an interest rate of 7% over 1 year. This example uses the simple interest formula, demonstrating step-by-step calculations, and is ideal for students in Grades 5-7.

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