Find the simple interest.
$900 deposited at an interest rate of 3% for 5 years.
$1,348 deposited at an interest rate of 2.5% for 18 months.
it just asked for the interest
If you add the 135 to the original 900 you would have the "amount"
oh ok thank you
simple interest = principal x rate x time
for the first one:
interest = 900(.03)(5) = 135
do the second one the same way, use 18/12 for the time.
so the answer or the first one is 135 and im not supposed to add 900 to 135?
for the second one do i do
1348(0.0025)(1.5)= 5
small slip-up
2.5% = .025 not .0025 like you have
interest = 1348(.025)(1.5) = 50.55
(love to have a loan of %1348 where I would only pay $5 in 1 1/2 years)
To find the simple interest, we use the formula:
Simple Interest = Principal × Interest Rate × Time
1. For the first scenario:
Principal (P) = $900
Interest Rate (R) = 3% (or 0.03 as a decimal)
Time (T) = 5 years
Using the formula, the calculation is:
Simple Interest = $900 × 0.03 × 5
Simple Interest = $135
Therefore, the simple interest for $900 deposited at an interest rate of 3% for 5 years is $135.
2. For the second scenario:
Principal (P) = $1,348
Interest Rate (R) = 2.5% (or 0.025 as a decimal)
Time (T) = 18 months
However, to use the formula, we need to convert the time to years. Since 18 months is equivalent to 1.5 years:
Using the formula, the calculation is:
Simple Interest = $1,348 × 0.025 × 1.5
Simple Interest = $50.85
Therefore, the simple interest for $1,348 deposited at an interest rate of 2.5% for 18 months is $50.85.