Recall the formula for interest (I) as:
I = P * R * T
where P is the principal deposited, R is the rate in decimal form, and T is the number of years for the deposit.
So we replacethe values in the formula, making sure that the rate R is written in decimal form:
6% = 0.06
so the equation for interest (I) becomes:
I = 800 * 0.06 * 7 = $336
The interest collected is: $336.
