Question

What is the interest on a $12000 at 2.5% for 3 years?

Answer 1

Interest (I) = $ 900

Explanation:

Formula for interest is given by:

Interest(I) =
`(P * R * T)/(100)`

where

P represents principal

R represents rate of interest

T represents the time in year.

Given : P = $ 12,000 , R =2.5% and T = 3 years.

Interest(I) =
`(12000 * 2.5 * 3)/(100)`

On simplify:

`I = \$ 900`

Therefore, the interest is , $ 900