Question

An account earns annual simple interest. find the interest earned, principal, annual rate time, or time.Interest Earned :________Principal: $1250Interest rate:3%Time : 20 months

Answer 1

In one tear there are 12 months,

Determine the number of years in 20 months.

`\begin{gathered} t=(20)/(12) \\ =(5)/(3) \end{gathered}`

The formula for the interest earned is,

`I=(P\cdot r\cdot t)/(100)`

Determine the interest earned on 1250 over 5/3 years at rate of 3%.

`\begin{gathered} I=(1250\cdot3\cdot(5)/(3))/(100) \\ =(1250\cdot5)/(100) \\ =62.5 \end{gathered}`

Thus interest earned is $62.5.