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Determine the simple interest if the principal amount is $3,500, the rate of interest is 7% per annum, and the time is 6 years. Choose the correct option.

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1 vote

Answer:

Explanation:

interest=

100

p∗r∗t

p = principal amount , r = rate , t = time

interest=

100

3500∗7∗2

interest = RS. 490

User Jasper Rosenberg
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if you deposit $3,500 in a savings account that offers a 7% interest rate per year, after 6 years you will earn $1470 in interest. This means that your total balance after 6 years will be the original $3,500 plus the $1470 in interest, which amounts to $5000.

To determine the simple interest, we can use the formula:

Simple Interest = (Principal Amount) x (Rate of Interest) x (Time)

Given:

Principal Amount = $3,500

Rate of Interest = 7% per annum

Time = 6 years

Plugging the values into the formula:

Simple Interest = (3500) x (0.07) x (6)

Calculating the simple interest:

Simple Interest = $1470

Therefore, the simple interest on a principal amount of $3,500, at an annual interest rate of 7% for a period of 6 years, is $1470.

It's important to note that simple interest is calculated based on the original principal amount and does not take compounding into account.

User Adolfo Onrubia
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