What is the simple interest value missing in the table?

Question

Principal $2,500
Interest rate 3.5%
Time 5 years
Interest ?
$43.75
$437.50
$4,370.50
$43,750.00

Answer 1

To calculate the simple interest, you can use the following formula:

\[ \text{Simple Interest} (I) = \text{Principal} (P) \times \text{Rate} (r) \times \text{Time} (t) \]

In this case:

• Principal (P) = $2,500
• Interest rate (r) = 3.5% = 0.035 (when expressed as a decimal)
• Time (t) = 5 years

Now we can plug the values into the formula:

\[ I = 2500 \times 0.035 \times 5 \]

Calculating this step-by-step:

1. Calculate \(0.035 \times 5 = 0.175\)
2. Then multiply by the principal: \(2500 \times 0.175 = 437.50\)

So, the simple interest amount is:

\[ I = 437.50 \]

From the options given, the missing interest value is $437.50.