How much simple interest does 3000 yield in 2years at 8whole number 1over3%per annum

Answer 1

To solve the problem, we need to use the formula for simple interest:

Simple Interest = (Principal x Rate x Time) / 100

Where:

Principal = 3000 (the amount of money invested)
Rate = 8 1/3% per annum = 8.33% per annum
Time = 2 years

First, we need to convert the rate from a mixed number to a decimal. To do this, we need to add the whole number and the fraction:

8 + 1/3 = 8 1/3
= (8 x 3 + 1) / 3
= 25/3

So, the rate in decimal form is:

25/3% = 0.0833

Now, we can substitute the values into the formula:

Simple Interest = (3000 x 0.0833 x 2) / 100
= 499.80

Therefore, the simple interest earned on 3000 for 2 years at 8 and 1/3% per annum is 499.80.