How much interest does a $407 investment earn at 6% over seven years?

What is the formula to calculate interest on an investment? How much interest does a $407 investment earn at 6% over seven years?

The formula to calculate interest on an investment is: I = P x r x t Where: I = Interest earned P = Principal amount ($407) r = Interest rate (6% or 0.06) t = Time period (7 years) Replacing the values given: I = $407 x 0.06 x 7 I = $24.42 x 7 I = $170.94 Therefore, the $407 investment will earn $170.94 in interest over seven years at a 6% interest rate.

Explanation:

The interest earned on an investment is calculated using the formula I = P x r x t, where I is the interest earned, P is the principal amount, r is the interest rate, and t is the time period. In this case, the principal amount is $407, the interest rate is 6% (or 0.06 as a decimal), and the time period is seven years. By substituting these values into the formula, we get: I = $407 x 0.06 x 7 I = $24.42 x 7 I = $170.94 So, the $407 investment will earn $170.94 in interest over the seven-year period. Summary: Based on the given data, a $407 investment will earn $170.94 in interest at a 6% interest rate over a period of seven years. This calculation is done using the formula I = P x r x t where P is the principal amount, r is the interest rate, and t is the time period.
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