Question

Hannah invested $600 for 8 years at a rate of 3% per year simple interest.Calculate the interest Hannah receives.

Answer 1

Given:

Principal = $600

Rate of simple interest = 3% per year

Time = 8 years

To find:

The simple interest.

Solution:

Formula for simple interest is:

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

Where, P is principal, r is the rate of interest in percent and t is the number of years.

Substituting
`P=600,\ r=3,\ t=8` in the above formula, we get

`I=(600* 3* 8)/(100)`

`I=6* 3* 8`

`I=144`

Therefore, the simple interest is $144.