Question

Find the simple interest paid to the nearest cent for each principal, interest rate, and time.

Principal: $1,450
Interest rate: 2.5%
Time: 2 years

Answer 1

To find the simple interest, multiply the principal ($1,450) by the interest rate (2.5%) and the time (2 years), which gives a simple interest of $72.50.

Step-by-step explanation:

To calculate simple interest, you can use the formula:

Interest = Principal × rate × time

For a principal of $1,450, an interest rate of 2.5%, and a time period of 2 years, you would complete the following calculation:

Interest = $1,450 × 0.025 × 2

First, convert the percentage rate to a decimal by dividing by 100:

Rate = 2.5% / 100 = 0.025

Next, multiply the principal by the decimal rate and the time:

Interest = $1,450 × 0.025 × 2

Interest = $72.50

Therefore, the simple interest paid to the nearest cent for the given principal, interest rate, and time is $72.50.