Question
\begin{tabular}{l} Simple Interest Applications \\ \hline Solve the following simple interest problems. Round your results to the nearest cent as needed. \\ \hline Jorge invests \( \$ 5,000 \) at a simple interest rate of \( 14 \% \) for 9 years. Determine the interest he will earn at \\ the end of 9 years. \\ Jorge will earn \( \$ \square \) in interest on his investment. \\ dollars \\ Chuck takes out a loan at a simple interest rate of \( 6 \% \). If Chuck borrows \( \$ 3,000 \) for 11 years, how much \\ interest will he pay at the end of 11 years? \\ Chuck will pay back \( \$ \square \) in interest on his loan. \\ dollars \end{tabular}
Ask by Garrett May. in the United States
Feb 26,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
Jorge will earn $6,300.00 in interest on his investment. Chuck will pay $1,980.00 in interest on his loan.
Solution
We use the simple interest formula: Interest = Principal × Rate × Time.
1. For Jorge:
Principal = $5,000
Rate = 14% = 0.14
Time = 9 years
Interest = 5000 × 0.14 × 9 = 5000 × 1.26 = $6,300.00
2. For Chuck:
Principal = $3,000
Rate = 6% = 0.06
Time = 11 years
Interest = 3000 × 0.06 × 11 = 3000 × 0.66 = $1,980.00
Thus,
• Jorge will earn $6,300.00 in interest on his investment.
• Chuck will pay $1,980.00 in interest on his loan.
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Simplify this solution Bonus Knowledge
To find the interest earned or paid using simple interest, you can use the formula: \[ \text{Interest} = P \times r \times t \] where \( P \) is the principal amount, \( r \) is the rate (in decimal), and \( t \) is the time in years. For Jorge, he will earn \( 5000 \times 0.14 \times 9 = 6300 \). After rounding, Jorge will earn **$6,300.00** in interest on his investment. For Chuck, using the same formula, we calculate \( 3000 \times 0.06 \times 11 = 1980 \). After rounding, Chuck will pay back **$1,980.00** in interest on his loan.
