Matt has $550 in his savings account. He is eager to know how much interest the bank will pay him for the whole year. He knows t
hat the bank pays a 3 percent interest rate. He sits down with a pen, paper, and calculator to find out the simple interest. Let’s help him out. Matt has already jotted down the formula he needs to use: I = P × r × t First, help him substitute the correct values in this formula. Write down the appropriate numbers for principal, rate of interest, and time
From Matt's formula: I=P×r×t P=principle amount (amount invested) r=rate t=time From the information given: P=$550 r=0.03 t=1 therefore I=550*0.03*1 I=$16.5