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.