Question

Simple interest of $725 at 3.25% for 6 months

Answer 1

The simple interest on the principal amount of $725 at a rate of 3.25% for 6 months is $736.78

What is simple interest?

Simple interest is calculated on the loan principal amount or the initial deposit into a savings account. It can be determined by using the formula:

$\mathbf{S.I = P(1 + rt)}$

where:

• P = principal = $725
• R = rate = 3.25%
• T = time = 6 months = 0.5 years

$\mathbf{S.I = 725(1 + 0.0325(0.5))}$

S.I = $736.78

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