Question

How much interest will $875.00 earn after 3 months at 5.5%?

Answer 1

Answer:

I = Prt

Substitute the given information. Remember to write the percent in decimal form. I = (500)(0.06)(3)

Simplify. I = 90

Check your answer. Is $90 a reasonable interest earned on $500 in 3 years? In 3 years the money earned 18%. If we rounded to 20%, the interest would have been 500(0.20) or $100. Yes, $90 is reasonable.

The simple interest is $90.

Step-by-step explanation:

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