Asked by Anonymous

In consumer arithmetics is the simple interest always smaller than the principle?

Answers

Answered by MathMate
It depends on the interest rate, which does not usually exceed 25%, and the duration. The longer the loan lasts, the more the (simple) interest would be.

For example, at 11% simple interest for a principle of $100, the interest is 100*(0.11*10) = $110, which exceeds the simple interest.

Answered by Sydnee
An investment adviser invested $14,000 in two accounts. One investment earned 5% annual simple interest, and the other investment earned 2.5% annual simple interest. The amount of interest earned for 1 year was $540. How much was invested in each account?
Answered by Anonymous
2.300. 1.500. 2.500
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