Question

1. What is the simple interest on $2500 invested at an interest rate of 6%
for 2 years?

Answer 1

`\bf \underline{Given :-}`

`\sf• \: Principle (p) = \$ \: 5200`

`\sf• \: Rate \: of \: interest (r) = 6 \: \% = (6)/(100)`

`\sf• \: Time \: (t) = 2 \: years`

`\\`

`\bf \underline{To \: Find :-}`

`\sf• \: The \: Simple \: Interest \: (I)`

`\\`

`\bf \underline{Solution :-}`

`\sf We \: know \: that,`

`\red {\bigstar\bf { \: I = prt}}`

`⟹I = 2500 * (6)/(100) * 2`

`⟹I = 300`

`\\`

`\bf \blue{Hence, \: the \: \: Simple \: \: Interest \: \: is \: \: \$ \: 300. }`

Answer 2

`\boxed {\boxed {\sf \$300.00}}`

Explanation:

The formula for simple interest is:

`I=P*R*T`

where P is the principal amount of money, R is the interest rate as a decimal, T is the time.

We know the principal amount is $2500, the interest rate is 6%, and the time is 2 years.

We must convert the interest rate to a decimal.

• Divide by 100 or move the decimal place two spots to the left.
• 6/100=0.06 or 6.0 --> 0.6 --> 0.06

Now we know all the values.

`P= 2500 \\R= 0.06 \\T= 2`

Substitute the values into the simple interest formula.

`I= (2500)(0.06)(2)`

Multiply.

`I=(2500)(0.12)\\I=300= \$ 300`

The simple interest is $300.00