Question

Can someone please help me with these three??

Answer 1

Answer:

1. $1.5

2. $126

3. $630

Explanation:

1. The cost of the bike = $150.00

The amount saved in the bank, P = $25.00

The interest rate on the account, R = 3%

The number of years the amount is saved, t = 2 years

The simple interest earned, 'I', is given by the following formula;

$Simple \ Interest, \ I = \dfrac{P \times R\times T}{100}$

Therefore;

$I_2 = \dfrac{25 \times 3\times 2}{100} = 1.5$

The simple interest earned in two years, I₂ = $1.5

2. The cost of the television set, P = $700

The interest charged by the credit card, R = 18%

The number of years it takes to pay for the television, t = 1 year

∴ I = P×R×T/100

∴ I = $700 × 18 × 1/100 = $126

The interest paid after 1 year, I = $126

3. The cost of the new heater, P = $3,500

The interest rate for the loan to buy the heater, R = 9%

The duration of the loan = 24 months

The duration of the loan in years, t = 24 months × 1 year/(12 months) = 2 years

The interest on the loan, I = $3,500 × 9 × 2/(100) = $630

The interest on the loan, I  = $630.