Computation for simple interest is very easy and convenient to do since it only involves direct multiplication of the parameters. Below is the formula for getting the simple interest.

Interest = Principal x Rate x Time

Note:beginning date is not included in counting.

Principal amount is $2000.

Rate of interest is 5%.

Time to pay the principal with the interest is 1 year.

Using the formula for solving the interest;

Interest = Principal x Rate x Time

Interest = $2000 x 5% x 1

Interest = $2000 x 0.05 x 1

Interest = $100

Therefore, the man will pay $100 interest.

Principal amount is $400,000.

Rate of interest is 10%.

Time to pay the principal with the interest is 4 years.

Using the formula for solving the interest;

Interest = Principal x Rate x Time

Interest = $400,000 x 10% x 4

Interest = $400,000 x 0.1 x 4

Interest = $160,000

Therefore, the factory will pay $160,000 as interest.

Principal amount is $300.

Rate of interest is 12%.

Time to pay the principal with the interest is 3 months.

Converting months into years;

`3` months x `((text(1 year))/(text(12 months ))) = `(1/4 years)`

Using the formula for solving the interest;

Interest = Principal x Rate x Time

Interest = `$300` X `12%` X `1/4`

Interest = `$300` X `0.12` X `1/4`

Interest = $9

Therefore, Jenny's friend will pay $9 interest.

© 2023 iPracticeMath | All Rights Reserved | Terms of Use.