Question

Hannah invested $600 for 8 years at a rate of 3% per year simple interest.Calculate the interest Hannah receives.

Answer 1

Given:

Principal = $600

Rate of simple interest = 3% per year

Time = 8 years

To find:

The simple interest.

Solution:

Formula for simple interest is:

$I=\dfrac{P\times r\times t}{100}$

Where, P is principal, r is the rate of interest in percent and t is the number of years.

Substituting $P=600,\ r=3,\ t=8$ in the above formula, we get

$I=\dfrac{600\times 3\times 8}{100}$

$I=6\times 3\times 8$

$I=144$

Therefore, the simple interest is $144.