Question

You can invest $200 at 8% for 3 years. Find the simple interest.

Answer 1

$48

Explanation:

First, converting R percent to r a decimal

r = R/100 = 8%/100 = 0.08 per year,

then, solving our equation

I = 200 × 0.08 × 3 = 48

I = $ 48.00

The simple interest accumulated

on a principal of $ 200.00

at a rate of 8% per year

for 3 years is $ 48.00.