SOLUTION: What is the interest earned on $400 invested at the rate of 6% for one year?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: What is the interest earned on $400 invested at the rate of 6% for one year?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 761439: What is the interest earned on $400 invested at the rate of 6% for one year?
Found 2 solutions by Cromlix, 2897696:
Answer by Cromlix(4381) About Me  (Show Source):
You can put this solution on YOUR website!
6% of $400
6/100 * $400
= $24.
Hope this helps.
:-)

Answer by 2897696(96) About Me  (Show Source):
You can put this solution on YOUR website!
To solve this problem, we can use a formula :I=PRT or iprt
I=interest(money paid for money used)
P=principal (money invested or loaned)
R=rate
T=time
From here we plug in to the formula what we know.
I=? or x
P=400
R=6% or 0.06
T=one year
Equation is : I=PRT ----------> x=400(0.06)1
Once you have the equation, just solve for x.
x=24(1)
x=24
so the interest is $24.