Question

Find the simple interest to the nearest cent
$800 at 9% for four years

Answer 1

ou want to calculate the interest on $800 at 9% interest per year after 4 year(s).

The formula we'll use for this is the simple interest formula, or:

I=P x r x t

P is the principal amount, $800.00.

r is the interest rate, 9% per year, or in decimal form, 9/100=0.09.

t is the time involved, 4....year(s) time periods.

So, t is 4....year time periods.

To find the simple interest, we multiply 800 × 0.09 × 4 to get that:

The interest is: $288.00