Question

Find the simple interest and amount in each of the following:

(a) P = $1800, R = 5%, T = 1 year.
(b) P = $2600, R = 12%, T = 3 years.
(c) P = $3125, R = 15%, T = 73 days.
(d) P = $5660, R = 11%, T = 9 months.
(e) P = $180, R = 3%, T = 11/4 year.

a) Simple interest for (a)
b) Total amount for (b)
c) Simple interest for (c)
d) Total amount for (d)
e) Simple interest for (e)

Answer 1

The simple interest and total amount can be calculated using the formula: Simple Interest = Principal * Rate * Time and Total Amount = Principal + Simple Interest.

Step-by-step explanation:

For question (a), the simple interest can be calculated using the formula:

Simple Interest = Principal (P) * Rate (R) * Time (T)

Simple Interest = $1800 * 0.05 * 1 = $90

The total amount can be calculated by adding the simple interest to the principal:

Total Amount = Principal + Simple Interest = $1800 + $90 = $1890

For question (b), the total amount can be calculated using the same formula:

Total Amount = Principal + (Principal * Rate * Time)

Total Amount = $2600 + ($2600 * 0.12 * 3) = $4040

For question (c), since the time is given in days, it needs to be converted to years:

Time in years = 73 days / 365 days/year = 0.2 years

Simple Interest = $3125 * 0.15 * 0.2 = $93.75

For question (d), the time is given in months, so it needs to be converted to years:

Time in years = 9 months / 12 months/year = 0.75 years

Simple Interest = $5660 * 0.11 * 0.75 = $553.25

For question (e), the time is given in fraction of a year, and it can be calculated as:

Time in years = 11/4 years = 2.75 years

Simple Interest = $180 * 0.03 * 2.75 = $14.85