Question

In the situation, simple interest is calculated yearly. How much interest was earned? (Answers above)

Answer 1

Hello there.

In the situation, simple interest is calculated yearly. How much interest was earned? (Answers above)
1100

Answer 2

The simple interest formula allows us to calculate I, which is the interest earned or charged on a loan. According to this formula, the amount of interest is given by I = Prt, where P is the principal, r is the annual interest rate in decimal form, and t is the loan period expressed in years.

I = Prt
I = 5500 (8) (0.025) = 1100  <----second option