Based on simple interest, find the total amount saved or owed.
principal = $1700; rate = 6%; time = 5 years
Interest = principal times rate times time
The answer is $510
To find the total amount saved or owed using simple interest, you can use the formula:
Simple Interest = (Principal * Rate * Time)
Where:
Principal = $1700 (the initial amount)
Rate = 6% (annual interest rate)
Time = 5 years (the duration for which the interest is calculated)
First, convert the rate from a percentage to a decimal by dividing it by 100:
Rate = 6 / 100 = 0.06
Now, plug in the values into the formula:
Simple Interest = (1700 * 0.06 * 5)
Simple Interest = 510
So, the total amount saved or owed based on simple interest is $510.