Question - Calculating Simple Interest
mathinterest rate calculationsimple interest calculationsimple interest formulacalculate simple interest
Solution:
To calculate the simple interest, you can use the formula:$$ \text{Interest} = P \times \frac{r}{100} \times \frac{t}{12} $$where:- P is the principal amount (initial amount of money)- r is the annual interest rate (as a percentage)- t is the time the money is invested for, in monthsGiven in the image:- P = $1300- r = $$4 \frac{1}{2}$$ % = 4.5%- t = 3 monthsPlugging these values into the formula gives us:$$ \text{Interest} = 1300 \times \frac{4.5}{100} \times \frac{3}{12} $$$$ \text{Interest} = 1300 \times 0.045 \times 0.25 $$$$ \text{Interest} = 58.5 \times 0.25 $$$$ \text{Interest} = 14.625 $$Rounded to the nearest cent, the interest is $14.63.
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