Chapter 12.6, Problem 34SR

To determine

Calculate interest amount on 1500$ at 7.5% for 5 years.

Answer to Problem 34SR

Interest on 1500$ at 7.5% for 5 years is 562.5$

Explanation of Solution

Given:

Principle amount, P = 1500$

Interest rate, r = 7.5%

Time period, t = 5 years

Calculations:

Here, we have to calculate amount of interest.

We have an equation to calculate interest amount,

$I=prt$

Putting values in above equation, we get

$\begin{array}{l}I=prt\\ =1500\times 7.5\%\times 5\\ =1500\times \frac{7.5}{100}\times 5\\ I=562.5\$\end{array}$

Conclusion:

Therefore, we are able to calculate value of interest on given principle amount, interest rate for given time period.