Question

Find the simple interest owed for p=$260, r=4%,t=3 years

Answer 1

formula for simple interest is A= P(1+rt)

Convert 4% to decimal -> .04

A = 260(1 + (0.04 × 3)) = 291.2
A = $291.20

:D

Answer 2

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Find 1 year interest :
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1 year interest = 4% of $260
1 year interest = 0.04 x 260
1 year interest = $10.40

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Find 3 years interest :
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1 year interest = $10.40
3 years interest = $10.40 x 3
3 years interest = $31.20

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Answer: The interest for 3 years is $31.20.
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