Question

Todd invests $6500 for 3 1/2 years at 5% interest.how much interest will he be paid at the end of the time period?

Answer 1

The simple interest formula is give by

`I=P* r* t`

where I is the interest earned after t years and r is the rate of interest. In our case, P= $6500, r= 0.05 and t=3.5 years.

By substituting these values into the simple interest formula, we get

`I=6500*0.05*3.5`

which gives

`I=1137.5`

that is, the interest will be $1,137.5