Question

$35 at a simple interest rate of 2.5% for 2 year. Find the balance

Answer 1

35 × 2.5 × 2 = 175 /100

= 1.75

Explanation:

Simple interest is calculated with the following formula: S.I. = P × R × T, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years. The rate of interest is in percentage r% and is to be written as r/100.

Answer 2

$36.75

Explanation:

1. Convert your Interest rate (2.5%) by 100 is 0.025 per year.

2. Next, solve the equation 35(1+ 0.025 x 2) = 36.75

∧- I put the 2 here for the 2 years.