Question

Calculate the simple interest on the same sum and rate in 1 ½ years.

Option 1: Option 1: Same as for 1 year
Option 2: 1.5 times the interest for 1 year
Option 3: 0.75 times the interest for 1 year
Option 4: 2 times the interest for 1 year

Answer 1

The amount of simple interest earned over 1 ½ years is 1.5 times the interest of one year. The correct answer is Option 2: 1.5 times the interest for 1 year.

Step-by-step explanation:

The amount of simple interest earned on a deposit is directly proportional to the time the money is invested. Therefore, if you invest a sum of money for 1 ½ years, you will earn 1.5 times the interest you would earn in one year. Using the simple interest formula, I = PRT (Interest = Principal x Rate x Time), if you know the interest earned in one year, you can calculate the interest for 1 ½ years by multiplying by 1.5.

For example, if you have a $100 deposit at a simple interest rate of 5% held for one year, the interest earned is:

$100 × 0.05 × 1 = $5

For 1 ½ years, the calculation would be:

$100 × 0.05 × 1.5 = $7.50

Thus, the correct answer to the student's question would be Option 2: 1.5 times the interest for 1 year.