Question

How much simple interest is earned on $6500 at an interest rate of 3.25% in 4 years?

Answer 1

The Solution:

Simple Interest formula is given as below:

`\begin{gathered} I=\frac{\text{PRT}}{100} \\ \text{Where} \\ P=\text{ Principal = \$6500} \\ R=\text{ Rate = 3.25\%} \\ T=\text{ Time = 4 years} \\ I=\text{simple interest=?} \end{gathered}`

Substituting these values in the formula above, we get

`I=(6500*3.25*4)/(100)=65*3.25*4=\text{ \$845.00}`

Therefore, the interest earned is $845.00