Chapter 6, Problem 45CR

To determine

To calculate the simple interest.

Answer to Problem 45CR

$251.7

Explanation of Solution

Given:

Principal: $575

Time: 7 years

Rate of interest: 6.25%

Formula used:

Simple interest, $I=prt$

Where

I is the simple interest

p is the principal

r is the rate of interest

t is the time

Calculation:

The rate of interest is 6.25%.

Therefore, this can be $\frac{6.25}{100}=0.0625$

Using the given formula and substituting the given values,

  $\begin{array}{l}I=prt\\ I=575\times 0.0625\times 7\\ I=251.5625\end{array}$

Rounding the Interest to the nearest cent (cent = hundred),

  $I=251.7$

Conclusion:

Therefore, the simple interest is $251.7.