Determine the simple interest earned on \( \$ 10,000 \) after 10 years if the APR is \( 17 \% \)

To calculate the simple interest, you can use the formula: \[ \text{Interest} = P \times r \times t \] where: - \( P \) is the principal amount (\$10,000), - \( r \) is the annual interest rate (0.17 for 17%), - \( t \) is the time in years (10 years). Now, plug in the values: \[ \text{Interest} = 10,000 \times 0.17 \times 10 = 17,000 \] So, the simple interest earned is \( \$17,000 \). Now, let's add some fun background and application info! Historically, simple interest has been used for centuries, dating back to ancient civilizations. In Mesopotamia, traders would charge interest on loans to account for the risk of lending grain or livestock, laying the groundwork for modern banking practices! In real-world applications, understanding simple interest is crucial for personal finance. Whether you're assessing savings accounts or calculating loans, knowing how to determine simple interest helps you make informed decisions about borrowing and investing your money wisely!