Question

Your parents charge a family ski trip of $3000 on a credit card, the simple interest rate is 20%. The charges are paid after 6 months. What is the amount of interest?

Answer 1

$300

Explanation:

In this question, we are simply asked to calculate the simple interest on $3000, at a rate of 20% paid after 6 months.

We can do this as follows. Mathematically, it should be remembered that:

S.I = PRT/100

In this case, we lost out the individual values as follows:

P = $3000, R = 20% and T = 6 months = 0.5years, S.I = ?

We substitute the parameters into the equation:

S.I = (3000 * 20 * 0.5)/100 = $300