Question

Find the simple interest on 7,200 at 3/4% for 5 years​

Answer 1

$7474.08

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
6. Addition
7. Subtraction

• Left to Right

Algebra I

Simple Interest Rate Formula:
`\displaystyle A = P(1 + r)^t`

• A is final amount
• P is principle (initial) amount
• r is rate
• t is time (in years)

Explanation:

Step 1: Define

P = 7200

r = 0.75% = 0.0075

t = 5

Step 2: Solve for A

1. Substitute in variables [Simple Interest Rate Formula]:
   `\displaystyle A = 7200(1 + 0.0075)^5`
2. (Parenthesis) Add:
   `\displaystyle A = 7200(1.0075)^5`
3. Evaluate exponents:
   `\displaystyle A = 7200(1.03807)`
4. Multiply:
   `\displaystyle A = 7474.08`