Question

780 at 5.25 for 10 months what is the amount of simple interest

Answer 1

$814.13

Explanation:

Recall that the simple interest formula is a=p(1+rt).

a= final amount (Unknown)

p=starting amount ($780)

r= interest rate (5.25= 0.0525%)

t=time in years (10 months =5/6 years)

Plug numbers into formula:

a=780(1+5.25*5/6)

Solve parenthesis first according to PEMDAS:

a=780(1.04375)

Multiply:

814.125

Round to nearest hundredth (cent):

$814.13