Allie Has $1000 Invested in an Account With an Apy of 3.2%. How Much Interest Will She Earn in One Year?
Allie will earn $32 in one year with a $1000 investment in an account with a 3.2% APY.
by Sai V
Updated Oct 30, 2023
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Allie Has $1000 Invested in an Account With an Apy of 3.2%. How Much Interest Will She Earn in One Year?
To calculate the interest earned in one year with an APY (Annual Percentage Yield) of 3.2% on a $1000 investment, you can use the formula for simple interest:
Interest =p*(r/100)*t
Where:
- P is the principal amount (initial investment) which is $1000
- r is the annual interest rate in percentage, which is 3.2%
- t is the time the money is invested in years, which is 1 year in this case
Substituting the given values:
Interest = 1000*(3.2/100)*1
Interest = 1000*0.032*1
Interest} = 32
Allie will earn $32 in interest in one year with a $1000 investment in an account with an APY of 3.2%.
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