Question
upstudy study bank question image url

An Listen \( \$ 1200 \) at \( 2.8 \% \) for 30 months The interest earned is \( \$ \square \).

Ask by Wright Luna. in the United States
Mar 16,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

The interest earned is \$84.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

The Deep Dive

To calculate the interest earned on \( \$1200 \) at a rate of \( 2.8\% \) for \( 30 \) months, you can use the formula for simple interest: \[ \text{Interest} = P \times r \times t \] Where \( P \) is the principal amount (\$1200), \( r \) is the rate (as a decimal), and \( t \) is the time in years. First, convert the rate to decimal by dividing by \( 100 \) (\( 2.8/100 = 0.028 \)). Since \( 30 \) months is \( 2.5 \) years, plug in the values: \[ \text{Interest} = 1200 \times 0.028 \times 2.5 \approx \$84 \] So, the interest earned is \( \$84 \). To get a firmer grasp on the topic of interest calculations, it’s useful to explore the historical roots of finance! The concept of charging interest dates back to ancient Mesopotamia, where loan records were kept on clay tablets around 3000 B.C. It originated when farmers borrowed seeds, with repayment in kind—the more you grew, the more you could return, just like today's interest! If you're keen to understand more about financial literacy, check out “The Simple Path to Wealth” by JL Collins. It’s a delightful read that demystifies investing and saving for the future while making it fun and approachable! You'll learn about the magic of compound interest and how it can work wonders for your savings over time.

Related Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy