Determine the simple interest earned on $22,500 after 15 years if the APR is 17%.
To calculate simple interest, we use the formula:
Simple Interest = Principal x Rate x Time
Where:
Principal = $22,500
Rate = 17% or 0.17
Time = 15 years
Plugging in the values:
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $22,500 x 0.17 x 15
Simple Interest = $5737.50
Therefore, the simple interest earned on $22,500 after 15 years at an APR of 17% is $5737.50.