Question

$1900 at 5.9% interest rate for 18 months. What would the simple interest be?

Answer 1

Given:

Principal = $1900

interest rate = 5.9%

Period = 18 months

Required : Simple interest

The formula for calculating simple interest is:

`\begin{gathered} S\mathrm{}I\text{ = }\frac{P\text{ }*\text{ r }*\text{ t}}{100} \\ \text{Where P is the principal} \\ r\text{ is the rate of interest} \\ t\text{ is the time in years} \end{gathered}`

Substituting the given values into the formula:

`\begin{gathered} SI\text{ = }\frac{1900\text{ }*\text{ 5.9 }*\text{ }(18)/(12)}{100} \\ =\text{ }168.15 \end{gathered}`

Hence, the simple interest is $168.15