Question

Using the formula for simple interest and the given values, find I. P = $500; r = 6%; t = 7 years; I = ?

Answer 1

To find the simple interest (I) using the Principal (P) of $500, rate (r) of 6%, and time (t) of 7 years, use the formula I = P × r × t, which gives us I = $210 after performing the calculation.

Step-by-step explanation:

Using the simple interest formula, which is Interest (I) = Principal (P) × rate (r) × time (t), we can find the total interest earned for the given values. In this case, the Principal (P) is $500, the rate (r) is 6% or 0.06 as a decimal, and the time (t) is 7 years.

To calculate I, simply substitute the given values into the formula:

1. 
   
3. Convert the percentage rate to a decimal: r = 6% = 0.06.
4. 
   
6. Substitute the values into the formula: I = P × r × t.
7. 
   
9. Calculate the interest: I = $500 × 0.06 × 7.
10. 
    
12. Perform the multiplication: I = $210.

Therefore, the total interest I earned after 7 years is $210.