Question

Escribe and correct the error in finding the simple interest earned on $500 at 6% for 18 months. I=500(0.06)(18) I = 540

Answer 1

Answer: 45$

Explanation:

Given

Principal
`P=\$500`

Rate
`R=6\%`

time
`t=18\ \text{months or}\ 1.5\ \text{years}`

Simple interest is given by

`\Rightarrow S.I.=(P* R* T)/(100)`

In the question, time is taken in months which is incorrect

Putting values

`\Rightarrow S.I.=(500* 6* 1.5)/(100)=45\$`