Question

Find the balance of the account using the simple interest formula of I=Prt

Answer 1

Given:

Principal = $1400

Simple rate of interest = 1.25%

Time = 6 month

To find:

The balance of the account after simple interest.

Solution:

The formula for simple interest is

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

Where, P is principal, r is the rate of interest in % and t is time in years.

Time = 6 months

        = $\dfrac{6}{12}$ year

        = 0.5 year

Putting 1400, r=1.25, t=0.5 years.

$I=\dfrac{1400\times 1.25\times 0.5}{100}$

$I=\dfrac{875}{100}$

$I=8.75$

Now, the amount is

$A=P+I$

$A=1400+8.75$

$A=1408.75$

Therefore, the balance of the account after the simple interest is $1408.75.