Question

What is the interest if a sum of $5200 is invested for 36month at 15% per annum​

Answer 1

$2,340

Explanation:

36 months = 3 years

15/100 × 5200 = 780 per annum

3 years: 780×3 = $2,340

Answer 2

I = 2,340

Explanation:

The formula for interest is

I = P × R × T / 100

P = $5200

R = 15%

T= 36 months; T is meant to be in years so we will convert it from months to years

1 year = 12 months

So 36 months

= 36 /12 = 3 years

I = (5200 × 15 × 3)/100

I = 234,000 / 100

I = 2,340