Question

Find the simple interest paid to the nearest cent for each principal, interest rate, and time.

$152,2.5%,18 month

Answer 1

The simple interest for $152, 2.5%, 18 month is $5.7

Solution:

Given that, principal amount = $ 152, interest rate = 2.5 % and time period = 18 months.

Now we have to calculate the simple interest for above given values.

We know that, simple interest is given as

`=\frac{\text { principal amount } * \text { interest rate } * \text { time period in years }}{100}`

By substituting the given values, we get

`\text { Simple interest }=\frac{152 * 2.5 * 18 \mathrm{months}}{100}`

By converting 18 months to years we get,

`\begin{array}{l}{=(152 * 2.5 * (18)/(12))/(100)} \\\\ {=(152 * 2.5 * (3)/(2))/(100)} \\\\ {=(152 * (3)/(2))/(40)} \\\\ {=(76 * 3)/(40)=(19 * 3)/(10)} \\\\ {=(57)/(10)=5.7}\end{array}`

Hence, the simple interest is $5.7