Question

Li invest money in a savings account. She wants to know the amount of simple interest that she will earn 6 years at 3.75 percent What additional information does she needs to find this amount

Answer 1

Explanation:

principle

Answer 2

Principal

Explanation:

In Business, the formula for calculating simple interest on an amount of money saved is expressed using the formula below.

Simple Interest = Principal * Rate * Time/100

From the question, the parameters given are the time which is 5 years and the rate at 3.75%. There is no information on the principal and before we can calculate the simple interest that Li will earn, the her principal must be made known. Principal is like the amount she initially saved in her account.

Hence, the additional information that she needs to find the simple interest is her principal.