Answer:
$14.52
Step-by-step explanation:
We need to use the formula for simple interest to solve this problem. The formula is shown below:
[tex]i=Prt[/tex]
Where
i is the simple interest earned
P is the principal (initial) amount
r is the rate of interest
t is the time in years
In this problem, we are given:
P = 110
r = 13.2%
converted to decimal, 13.2/100 = 0.132
t = 1 (1 year)
Now we substitute and find interest earned:
[tex]i=Prt\\i=(110)(0.132)(1)\\i=14.52[/tex]
Thus, the simple interest earned on $110 in 1 year is $14.52
