Samuel invested money in his bank account. he had a principal, p, of $100 in his account at the beginning of the period, which i

Question

2 years ago

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Samuel invested money in his bank account. he had a principal, p, of $100 in his account at the beginning of the period, which i

ncreased at a rate, r, of 0.15 per year. at the end of the period, he had interest, i, of $105 in his account. use the simple interest formula i = prt, to solve for the time, t, in months that it took to earn this amount. (1 point) 7 months 58 months 84 months 700 months

Mathematics

1 answer:

Natasha2012 [34] · Answer 1 · 2023-03-06T23:31:14+03:00

The correct answer is 700 months .

<h3>What is simple interest?</h3>

Simple interest is based on the principal amount of a loan or the first deposit in a savings account.
Simple interest doesn't compound, which means a creditor will only pay interest on the principal amount and a borrower would never have to pay more interest on the previously accumulated interest.

Given,

I = 105

P = 100

r = 0.15

Now use simple interest formula,

$S.I. = \frac{p * r* t}{100}$