Answer:
Step-by-step explanation:
You want to calculate the interest on $320 at 11% interest per year after 5 year(s).
The formula we'll use for this is the simple interest formula, or:
Where:
P is the principal amount, $320.00.
r is the interest rate, 11% per year, or in decimal form, 11/100=0.11.
t is the time involved, 5....year(s) time periods.
So, t is 5....year time periods.
To find the simple interest, we multiply 320 × 0.11 × 5 to get that:
The interest is: $176.00
Usually now, the interest is added onto the principal to figure some new amount after 5 year(s),
or 320.00 + 176.00 = 496.00. For example:
If you borrowed the $320.00, you would now owe $496.00
If you loaned someone $320.00, you would now be due $496.00
