Question

225 amount
5% intersent rate
3 years
interest paid?

Answer 1

To calculate the interest paid on a principal amount over a specific period at a given interest rate, you can use the formula for simple interest:

\[
\text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time}
\]

Where:
- Principal = 225 (the initial amount)
- Rate = 5% = 0.05 (expressed as a decimal)
- Time = 3 years

Now, plug in the values:

\[
\text{Interest} = 225 \times 0.05 \times 3
\]

Calculating this step-by-step:

1. \( 225 \times 0.05 = 11.25 \)
2. \( 11.25 \times 3 = 33.75 \)

Thus, the total interest paid over 3 years is **$33.75**.