Question

Find the interest due on $1,090 at 8% for 5 years

Answer 1

For this case, we will use the simple interest formula:

`I = \frac {PRT} {100}`

Where,

• P: Initial amount
• R: rate
• T: time in years

Therefore, replacing values we have:

`I = \frac {(1090) (8) (5)} {100}\\I = 436`

Answer:

The simple interest is given by:

`I = 436` $

Answer 2

Simple interest = PRT/100 = 1090 x 8 x 5 / 100 = $436