Question

How do you solve simple interest

$600 at 5% for 2 years
and
%1500 at 4% for 4 years

Answer 1

1. $60

2. $240

Explanation:

Use the formula for simple interest. Put your numbers in the formula and do the arithmetic.

i = Prt . . . . where i is the interest amount, P is the principal, r is the rate, t is the time period

1. P = $600, r = 0.05, t = 2, so you have ...

i = $600·0.05·2 = $60

__

2. P = $1500, r = 0.04, t = 4, so you have ...

i = $1500·0.04·4 = $240