Chapter 12.6, Problem 37SR

To determine

To find:The simple interest

Answer to Problem 37SR

The simple interest is3

  $\$9135$

Explanation of Solution

Given: $\$10,150\text{ at 4}\text{.5\% for 20 years}\text{.}$

Formula Used:

The simple interest is calculated as

  $l\text{=}\frac{PRT}{100}$ .

Calculation:

Consider the principal amount is $\text{\$10150}$ , the rate of interest is $\text{4}\text{.5\%}$ and time is $\text{20 years}\text{.}$

The objective is to find the simple interest earned on the principal amount.

The simple interest l is $l\text{=}\frac{PRT}{100}$ .

Here, p is the principal amount, R rate of interest and T is the time.

Substitute $P=10150,R=4.5\text{ and }T=20\text{ in }l\text{=}\frac{PRT}{100}$

  $\begin{array}{l}l\text{=}\frac{PRT}{100}\\ =\frac{10150(4.5)20}{100}\\ =\frac{10150(90)}{100}\\ =1015.9\\ =9135\end{array}$

Conclusion:Therefore, the simple interest on the given principal is $\$9135$ .