Allie Has $1000 Invested in an Account With an Apy of 3.2%. How Much Interest Will She Earn in One Year?

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%.