Question

Question 7 of 8

Calculate the amount of interest earned on a $7,500 investment made for 2 years at
5.5% p.a..

Answer 1

$825

Explanation:

Formula we use:

I = Prt

Given:

P = 7500

r = 5.5% or 0.055

t = 2

Work:

I = Prt

I = 7500(0.055)(2)

I = 412.5(2)

I = 825