Question

Escribe and correct the error in finding the simple interest earned on $500 at 6% for 18 months. I=500(0.06)(18) I = 540

Answer 1

Answer: 45$

Step-by-step explanation:

Given

Principal $P=\ 500$

Rate $R=6\%$

time $t=18\ \text{months or}\ 1.5\ \text{years}$

Simple interest is given by

$\Rightarrow S.I.=\dfrac{P\times R\times T}{100}$

In the question, time is taken in months which is incorrect

Putting values

$\Rightarrow S.I.=\dfrac{500\times 6\times 1.5}{100}=45$