Question

Find the simple interest to the nearest cent (round to two decimal places as needed).

$1,295 at 9.25% for 4 years

Answer 1

$479.15

Explanation:

First, converting R percent to r a decimal

r = R/100 = 9.25%/100 = 0.0925 per year,

then, solving our equation

I = 1295 × 0.0925 × 4 = 479.15

I = $ 479.15

The simple interest accumulated

on a principal of $ 1,295.00

at a rate of 9.25% per year

for 4 years is $ 479.15.