GEN MATH

PIOLO DEPOSITED P16,000 IN BANK THAT OFFERS A SIMPLE INTEREST RATE OF 1.25% IF SHE PLACE THE MONEY FOR 7YEARS HOW MUCH MONEY WILL SHE EARN

To calculate how much money Piolo will earn through simple interest, we can use the simple interest formula:

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

Where:
- \(I\) is the interest earned.
- \(P\) is the principal amount (the initial deposit).
- \(r\) is the annual interest rate (as a decimal).
- \(t\) is the time the money is invested for (in years).

Given:
- \(P = 16,000\)
- \(r = 1.25\% = 0.0125\)
- \(t = 7\) years

Now, calculate the interest:

\[
I = 16,000 \times 0.0125 \times 7
\]

\[
I = 1,400
\]

So, Piolo will earn **P1,400** in interest over 7 years.

To find the total amount Piolo will have after 7 years, we add the interest to the principal:

\[
A = P + I = 16,000 + 1,400 = 17,400
\]

Thus, Piolo will have **P17,400** after 7 years.

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Do you have any questions or need more details? Here are some related questions you might find interesting:

1. How does the interest change if the rate is increased to 2%?
2. What if Piolo withdraws the money after only 5 years?
3. How does compound interest differ from simple interest?
4. What would the total amount be if the principal was doubled?
5. How long would it take for Piolo to earn P2,000 at the same interest rate?

**Tip:** Simple interest grows linearly over time, while compound interest can grow exponentially.

PIOLO DEPOSITED P16,000 IN BANK THAT OFFERS A SIMPLE INTEREST RATE OF 1.25% IF SHE PLACE THE MONEY FOR 7YEARS HOW MUCH MONEY WILL SHE EARN

Learn how to calculate the simple interest Piolo earns on a P16,000 deposit at a rate of 1.25% over 7 years. This problem uses basic algebraic concepts and the simple interest formula, making it suitable for students in Grades 6-8.

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