Question

The yearly interest payable on a deposit of $250 at 5.5% per annum the simple interest is:

Answer 1

Answer:

$13.75

Step-by-step explanation:

We know simple interest is calculated by the formula below:

SI = P*R*T/100

Given:

$P= 250\\R = 5.5%\\T = 1 yr$

Equating values in the formula,

$SI = \frac{P*R*T}{100} \\SI = \frac{250*5.5*1}{100}\\ SI = \frac{1375}{100}\\ SI=13.75$