Question

What is the simple interest earned on $250 which was invested for three years at an interest rate of 5%

Answer 1

Answer:

Example 6.4.1 :

Find the simple interest earned after 3 years on $500 at an interest rate of 6%.

Solution

Organize the given information in a list.

I = ?, P = $500, r = 6%, t = 3 years

We will use the simple interest formula to find the interest.

Write the formula.

I = Prt

Substitute the given information. Remember to write the percent in decimal form.

I = (500)(0.06)(3)

Simplify.

I = 90

Check your answer. Is $90 a reasonable interest earned on $500 in 3 years?

In 3 years the money earned 18%. If we rounded to 20%, the interest would have been 500(0.20) or $100. Yes, $90 is reasonable.

Write a complete sentence that answers the question.

The simple interest is $90.

please mark me as branlist