Question

If the balance at the end of five years on an investment of $ 875.77 that has been invested at a rate of 5% is $ 1,094.71, how much was the interest?

Answer 1

Simple interest,I= P*R*T/100

Where, principal=P=1094.71

Rate=R=5%

Time=T=5 years

Therefore, I=1094.71*5*5/100

I=273.6775

So, interest is $273.6775