Question

6. Find the interest to the nearest cent for a principal of

$1,900, an interest rate of 13%, and a time of
30 months

Answer 1

The interest to the nearest cent is
`\$`617.50

Solution:

The formula for interest is

`Interest=(Principal* Rate* Time)/(100)`

In the question it is given that

Principal =
`\$`1900

Rate = 13
`\%`

Time = 30 Months =
`(30)/(12)` year =
`(5)/(2)` year.

Now putting the values pf Principal, rate and time in the formula for Interest we get

Interest =
`(1900*13*5)/(100*2)`

On solving we get,

=
`(123500)/(200)`

=
`(1235)/(2)`

On dividing both the values we get,

=
`\$`617.5

Nearest cent is the nearest hundredth.

Thus, the interest to the nearest cent is
`\$`617. 50