Calculate the simple interest on each amount the total amount at the end.
A deposit of $2550.00 that earns 3% interest over 30 months.
Pleas show your steps!
Thankyou (:
Is that annual interest? Or is that the total interest for 30 months?
Total inerest for 30 months
2550 * 0.03 = ?
76.50
Right!
To calculate the simple interest on a deposit, you can use the formula:
Simple Interest = (Principal * Interest Rate * Time) / 100
In this case, the Principal (P) is $2550.00, the Interest Rate (R) is 3%, and the Time (T) is 30 months.
Step 1: Convert the interest rate to a decimal by dividing it by 100:
3% = 3/100 = 0.03
Step 2: Substitute the values into the formula and calculate the simple interest:
Simple Interest = ($2550.00 * 0.03 * 30) / 100
= ($2550.00 * 0.9) / 100
= $2295.00 / 100
= $22.95
So, the simple interest earned on a deposit of $2550.00 at a 3% interest rate over 30 months is $22.95.
To find the total amount at the end, you need to add the simple interest to the principal amount:
Total Amount = Principal + Simple Interest
= $2550.00 + $22.95
= $2572.95
Therefore, the total amount at the end would be $2572.95.