Question

Determine the simple interest owed on $940 for 5 years at a rate of 16.5%

Answer 1

Given:

The principal amount (P) = $940.

Rate of interest (r) = 16.5 %.

Time in years (t) = 5 years.

Required:

To determine the simple interest (I).

Step-by-step explanation:

The simple interest is calculated using following formula:

`I=(P* r* t)/(100)`

Substituting values, we get,

`\begin{gathered} I=(940*16.5*5)/(100) \\ \Rightarrow I=(77550)/(100) \\ \Rightarrow I=775.5 \end{gathered}`

Final Answer:

The simple interest is,

`I=775.5`