find the interest to the nearest cent on a principal of $1,000 borrowed at a rate of 12.5% annually for 3 years
1,000 * 0.125 * 3 = ?
We'll be glad to check your answer.
375
Right! :-)
To find the interest on a principal of $1,000 borrowed at a rate of 12.5% annually for 3 years, we can use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, the principal is $1,000, the rate is 12.5% (or 0.125 as a decimal), and the time is 3 years. Plugging in these values into the formula:
Interest = $1,000 * 0.125 * 3
Interest = $375
Therefore, the interest on the principal of $1,000 borrowed at a rate of 12.5% annually for 3 years is $375.