Question

Determine the simple interest when:

principal is $890, interest rate is 4.25% and the time is over 2 years​

Answer 1

$75.65

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4.25%/100 = 0.0425 per year,

then, solving our equation

I = 890 × 0.0425 × 2 = 75.65

I = $ 75.65

The simple interest accumulated

on a principal of $ 890.00

at a rate of 4.25% per year

for 2 years is $ 75.65.