What is the interest earned on Jason's investment of $325 at an annual interest rate of 24% after one year?

What is the interest earned on Jason's investment of $325 at an annual interest rate of 24% after one year?

• A. $78
• B. $65
• C. $80
• D. $100

Answer: (A)

To calculate the interest earned on Jason's investment of $325 at an annual interest rate of 24% after one year, you can use the formula for simple interest, which is: Interest = Principal × Rate × Time. In this case: - Principal (the initial amount) is $325, - Rate (the annual interest rate) is 24%, or 0.24 in decimal form, - Time is 1 year. Plugging the values into the formula: Interest = $325 × 0.24 × 1. Calculating this gives: Interest = $325 × 0.24 = $78. Thus, after one year, Jason earns $78 in interest on his investment. This illustrates the straightforward relationship between the principal, the interest rate expressed as a decimal, and the time period, resulting in a clear understanding of how to compute simple interest.

To calculate the interest earned on Jason's investment of $325 at an annual interest rate of 24% after one year, you can use the formula for simple interest, which is:

Interest = Principal × Rate × Time.

In this case:

• Principal (the initial amount) is $325,

• Rate (the annual interest rate) is 24%, or 0.24 in decimal form,

• Time is 1 year.

Plugging the values into the formula:

Interest = $325 × 0.24 × 1.

Calculating this gives:

Interest = $325 × 0.24 = $78.

Thus, after one year, Jason earns $78 in interest on his investment. This illustrates the straightforward relationship between the principal, the interest rate expressed as a decimal, and the time period, resulting in a clear understanding of how to compute simple interest.