Question

Find the simple interest earned after 4 years on $700 at an interest rate of 5.5%.

Answer 1

Answer:

The answer is

$ 154

Step-by-step explanation:

The simple interest on an amount of money can be found by using the formula

$I = \frac{principal \: \times \: rate \: \times \: time }{100}$

Where I = Simple interest

From the question

principal = $ 700

time = 4 years

rate = 5.5 %

So the simple interest is

$I = \frac{700 \times 5.5 \times 4}{100} \\ = \frac{15400}{100}$

We have the final answer as

$ 154

Hope this helps you