Questions: Simple Interest Eddy invests 10,792.39 in a savings certificate that gauntness 7% interest per year. How much Eddy have made in interest (do not include the original investment) after 22years? Round to two decimal places. This is but do not include the sign in your answer.

Solution Steps

To calculate the simple interest earned on an investment, use the formula: Simple Interest = Principal × Rate × Time. Here, the principal is \$10,792.39, the rate is 7% (or 0.07 as a decimal), and the time is 22 years. Multiply these values to find the interest earned.

Let:

• \( P = 10792.39 \) (Principal)
• \( r = 0.07 \) (Rate of interest)
• \( t = 22 \) (Time in years)

The formula for simple interest is given by: \[ I = P \times r \times t \] Substituting the values: \[ I = 10792.39 \times 0.07 \times 22 \]

Calculating the interest: \[ I = 10792.39 \times 0.07 \times 22 = 16620.2806 \] Rounding to two decimal places: \[ I \approx 16620.28 \]

Final Answer