Question

Find the simple interest.

$900 deposited at an interest rate of 3% for 5 years.


$1,348 deposited at an interest rate of 2.5% for 18 months.

Answer 1

simple interest = principal x rate x time
for the first one:
interest = 900(.03)(5) = 135

do the second one the same way, use 18/12 for the time.

Answer 2

so the answer or the first one is 135 and im not supposed to add 900 to 135?

Answer 3

it just asked for the interest

If you add the 135 to the original 900 you would have the "amount"

Answer 4

oh ok thank you

Answer 5

for the second one do i do

1348(0.0025)(1.5)= 5

Answer 6

small slip-up
2.5% = .025 not .0025 like you have

interest = 1348(.025)(1.5) = 50.55

(love to have a loan of %1348 where I would only pay $5 in 1 1/2 years)