Answer:
$2,031.08
Step-by-step explanation:
You want to calculate the interest on $1475 at 7.54% interest per year after 5 year(s).
The formula we'll use for this is the simple interest formula, or:
I=P x r x t
P is the principal amount, $1475.00.
r is the interest rate, 7.54% per year, or in decimal form, 7.54/100=0.0754.
t is the time involved, 5....year(s) time periods.
So, t is 5....year time periods.
To find the simple interest, we multiply 1475 × 0.0754 × 5 to get that:
The interest is: $556.08
Usually now, the interest is added onto the principal to figure some new amount after 5 year(s),
or 1475.00 + 556.08 = 2031.08. For example:
If you borrowed the $1475.00, you would now owe $2031.08
If you loaned someone $1475.00, you would now be due $2031.08
If owned something, like a $1475.00 bond, it would be worth $2031.08 now.
