Chase deposits $8,612.66 into a savings account that pays a simple annual interestrate of 3.34%. How much interest will he earn after 7 years? Round answer to thehundredths place. If answer doesn't have a hundredths place then include zeros sothat it does.



Answer :

Hello!

First, let's write some important information:

• Initial amount: $8,612.66

,

• Interest rate (per year): 3.34%

,

• Time (in years): 7

To solve this exercise, we must use the formula below to find the interest:

[tex]\mathrm{Interest=P\cdot r}\cdot\mathrm{t^}[/tex]

• P = principal

,

• r = rate/100

,

• t = time

Knowing it, let's calculate the simple interest after 7 years by replacing the values:

[tex]\begin{gathered} Interest\text{ = 8,612.66}\times0.0334\times7 \\ Interest=\text{8,612.66}\times0.2338 \\ Interest\cong2013.639908 \end{gathered}[/tex]

As the exercise mentions, we must round the value to the hundredths place (2 decimal places).

Interest after 7 years = $2013.64