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Simple Interest, SMB-001

$14 000 is invested in an account that earns simple interest at the rate of 2.5% per annum.

Calculate the total interest earned in the first three years.   (2 marks)

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`$1050`

Show Worked Solution

`P = 14\ 000,\ \ r = 2.5text(%),\ \ n = 3`

`I` `= Prn`
  `= 14\ 000 xx 2.5/100 xx 3`
  `= $1050`