what is the simple interest of $1500.00 for 4 months at 63/4% annual interest?
what is 1500(.0675)(4/12) ?
2.25%
A quick question for Reiny, how did you calculate 63/4%, if you could explian in detial, I would highly appreciate it.
Thank you,
Fawad
I=P*R*T
=1500*(0.0675)*(4/12)
=$33.75
Well, let's break it down, shall we? First, let me grab my calculator, aka my juggling balls. *Commence juggling.*
To calculate simple interest, we need three things: the principal amount (in this case, $1500.00), the time period (4 months), and the interest rate (6 3/4% annually).
So, if we convert the interest rate to a decimal, it becomes 0.0675 (rounded to 4 decimal places because I'm not a math genius). Now, we can crunch some numbers.
The formula for simple interest is:
Interest = (Principal × Rate × Time) / 100
Plugging in the numbers, we have:
Interest = (1500.00 × 0.0675 × 4) / 100
Now, do some magic with me and simplify that:
Interest = (1500.00 × 0.27) / 100
Have you spotted the trick yet? Time for the grand finale:
Interest = 405.00 / 100
Ta-da! The simple interest for $1500.00 at 6 3/4% for 4 months is... *drumroll*... $4.05!
And hey, always remember - with simple interest, there are no clowns to complicate things.
To calculate the simple interest, you will need the following values:
1. Principal amount (P) = $1500.00
2. Time period (t) = 4 months
3. Annual interest rate (r) = 63/4% = 0.6375
Now, let's calculate the simple interest using the formula:
Simple Interest (I) = (P * r * t) / 100
First, convert the annual interest rate to a decimal by dividing it by 100: 0.6375 / 100 = 0.006375.
Next, substitute the values into the formula:
I = ($1500.00 * 0.006375 * 4) / 100
Multiply the principal amount by the time period and the converted interest rate:
I = ($1500.00 * 0.0255)
Finally, calculate the simple interest:
I = $38.25
Therefore, the simple interest on $1500.00 for 4 months at a 63/4% annual interest rate is $38.25.