149,028 views
37 votes
37 votes
What is the simple interest of 8000 for 2.5 years at 4.25%

User Sergey Tsibel
by
3.4k points

1 Answer

17 votes
17 votes

We are going to find the simple interest of $8000, for 2.5 years, at 4.25%. We remember that the formula for the simple interest is given by:


I=Prt

Where P represents the principal value, r the interest rate, and t the time in years. For finding the simple interest, we will replace the values given onto the formula:


I=(8000)\cdot(0.0425)\cdot(2.5)

Given that 4.25% is equivalent to the value 0.0425, and we obtain:


\begin{gathered} I=340\cdot2.5 \\ =850 \end{gathered}

This means that the simple interest is $850.

User Cristiana Chavez
by
3.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.