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I = prt Time = 3 years Interest Rate = 5% Principal = $7,430 Use the information to answer the question. How much interest is paid? $111.45 $1,114.50 $11,145 $111,450

User Vicusbass
by
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2 Answers

3 votes
I = prt

p = 7430
r = 5%....turn to decimal = 0.05
t = 3

I = (7430)(0.05)(3)
I = 1114.50 <===
User Harsh Kurra
by
7.9k points
1 vote

Answer: Second option is correct.

Explanation:

Since we have given that

Principal = $7,430

Rate of interest = 5%

Time = 3 years

We need to find the interest paid using "simple Interest" method.

As we know the formula:


I=(p* r* t)/(100)\\\\I=(7430* 5* 3)/(100)\\\\I=\$1114.5

Hence, Second option is correct.

User Dan Tumaykin
by
8.4k points
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