Question

What is the interest paid to the nearest cent? $4,500, 9%, 3.5 years

Answer 1

`I=\$1,417.50`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=3.5\ years\\ P=\$4,500\\r=9\%=9/100=0.09`

substitute in the formula above

`I=4,500(0.09*3.5)`

`I=\$1,417.50`