Chapter 12.6, Problem 35SR

To determine

Calculate interest amount on 750$ at 12.25% for 10 years.

Answer to Problem 35SR

Interest on 750$ at 12.25% for 10 years is 918.75$

Explanation of Solution

Given: Principle amount, P = 750$

Interest rate, r = 12.25%

Time period, t = 10 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

$\begin{array}{l}I=prt\\ =750\times 12.25\%\times 10\\ =750\times \frac{12.25}{100}\times 10\\ I=918.75\$\end{array}$

Conclusion:

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