Subjects finance

Interest Earned Ec875C

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1. **Problem statement:** Calculate the interest Alexandra will have earned from her account after 6 years. 2. **Formula used:** For simple interest, the formula is $$I = P \times r \times t$$ where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal), and $t$ is the time in years. 3. **Important rules:** - Convert the interest rate percentage to a decimal by dividing by 100. - Time must be in years. 4. **Intermediate work:** - Suppose Alexandra's principal is $P$, and the annual interest rate is $r\%$. - Convert $r\%$ to decimal: $$r_{decimal} = \frac{r}{100}$$ - Calculate interest after 6 years: $$I = P \times r_{decimal} \times 6$$ 5. **Explanation:** Multiply the principal by the decimal interest rate and then by the number of years to find the total interest earned. 6. **Final answer:** The interest Alexandra will have earned after 6 years is $$I = P \times \frac{r}{100} \times 6$$. Please provide the principal amount and interest rate if you want a numerical answer.