Question

Li invests money in a savings account. She wants to know the amount of simple interest that she will earn in 6 years at 3.75 percent. What additional information does she need to find this amount?

principal
amount of time
interest rate
the type of account

Answer 1

Principal

She needs to know how much money she's putting in to be able to calculate interest.

Answer 2

Principal

Explanation:

Since, the amount in the simple interest is,

`A=P+(P* r* t)/(100)`

Where, P is the principal amount,

r is the annual rate,

t is the time ( in years ),

Here, r = 3.75 %, t = 6 years,

Thus, By the above explanation,

It is clear that, we need the value of P, that is, principal to find the amount.