Question

What is the simple interest that is missing from the table? Use the formula mc012-1.jpg.

I
?
p
$375
r
2.2%
t
3 years
$25.00
$24.75
$2,475.75
$2,500.00

Answer 1

To find the simple interest (I), we can use the formula for simple interest:

\[ I = P \times r \times t \]

where:
- \( I \) = Interest
- \( P \) = Principal amount (the initial amount of money)
- \( r \) = Rate of interest (as a decimal)
- \( t \) = Time (in years)

From the table, we have the following values:
- \( P = 375 \) (the principal)
- \( r = 2.2\% = \frac{2.2}{100} = 0.022 \) (the rate of interest)
- \( t = 3 \) years

Now we can substitute these values into the simple interest formula:

\[ I = 375 \times 0.022 \times 3 \]

Calculating this step-by-step:

1. Calculate \( 375 \times 0.022 = 8.25 \)
2. Now multiply this by 3:

\[ I = 8.25 \times 3 = 24.75 \]

So the simple interest \( I \) is **$24.75**.