Question

What is the simple interest on $500 at 9% for 2 years?

Answer 1

Given:

P = 500 dollars

R = 9% = 0.09

T = 2 years

Required:

Simple interest = ?

Step-by-step explanation:

The formula for simple interest is

`\begin{gathered} Simple\text{ }interest=(P* R* T)/(100) \\ \\ Simple\text{ }interest=(500*9*2)/(100)=(500*18)/(100)=5*18 \\ \\ Simple\text{ }interest=90 \end{gathered}`

Final answer:

The simple interest for 2 years is 90 dollars