Question

Find the simple interest paid to the nearest cent for each principal, interest rate, and time.

Answer 1

Answer:

The simple interest for $152, 2.5%, 18 month is $5.7

Solution:

Given that, principal amount = $ 152, interest rate = 2.5 % and time period = 18 months.

Now we have to calculate the simple interest for above given values.

We know that, simple interest is given as

$=\frac{\text { principal amount } \times \text { interest rate } \times \text { time period in years }}{100}$

By substituting the given values, we get

$\text { Simple interest }=\frac{152 \times 2.5 \times 18 \mathrm{months}}{100}$

By converting 18 months to years we get,

$\begin{array}{l}{=\frac{152 \times 2.5 \times \frac{18}{12}}{100}} \\\\ {=\frac{152 \times 2.5 \times \frac{3}{2}}{100}} \\\\ {=\frac{152 \times \frac{3}{2}}{40}} \\\\ {=\frac{76 \times 3}{40}=\frac{19 \times 3}{10}} \\\\ {=\frac{57}{10}=5.7}\end{array}$

Hence, the simple interest is $5.7