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30 January, 03:23

Find the amount of simple interest earned after 2 years on $480 invested at a 7% annual interest rate?

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  1. 30 January, 04:49
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    Formula for the simple interest is:

    I = P · r · t,

    where: P = $480, r = 7% = 0.07, t = 2 years;

    I = 480 · 0.07 · 2 = $67.20

    Answer:

    The amount of simple interest is $67.20
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