Question

The interest obtained after 1 year on an investment at 1 1/2% simple interest per year; x = number of dollars invested

Answer 1

Answer:

I = 0.015x

Step-by-step explanation:

To calculate the interest obtained from your investment after one year, multiply the interest rate by the investment.

You can use the formula I = Prt; where:

"I" is interest (Capital i).

"P" is principal, starting money or investment.

"r" is the interest rate converted to decimal form.

"t" is the time, usually in years.

Convert 1 1/2% to decimal form. First, change the mixed fraction percentage to a decimal percentage. Convert the percentage to decimal form by dividing by 100. This value will be "r". (Don't confuse decimal form with decimal form as a percentage).

1 1/2% = 1.5%

1.5% ÷ 100 = 0.015

r = 0.015

From the problem, we know the time is 1 year; t = 1.

We don't know the value for the principal, "P", but we are told to use the variable "x"; P = x

Using the bolded information, substitute them for the variables into the formula.

I = Prt

I = (x)(0.015)(1)     Remember any number multiplied by "1" is not changed.

I = (x)(0.015)       Change the standard formatting without brackets.

I = 0.015x         Formula for the interest obtained after 1 year.