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

1 answer

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.