Chapter 6.6, Problem 12IP

To determine

To find: Simple interest.

Answer to Problem 12IP

Simple interest $=I=\$22.02$

Explanation of Solution

Given information:

Principal amount $=\$734$

Time $=3$ months.

Interest percent $=12\%$

Concept:

  $I=prt$

Where

  $I=$ Simple interest.

  $p=$ Principal amount

  $t=$ time in years.

  $r=$ Annual interest rate.

Calculation:

From given information

Principal amount $=p=\$734$

Time $=t=3$ months.

We know

  $1$ year $=12$ months

Using that

We get

Time $=t=\frac{3}{12}=\frac{1}{4}$ years.

Interest percent $=R=12\%$

We know

Annual interest rate $=r=\frac{R}{100}$

  $\begin{array}{l}\Rightarrow r=\frac{12}{100}\\ \Rightarrow r=0.12\end{array}$

On substituting values in above mentioned concept

We get

  $\begin{array}{l}I=prt\\ \Rightarrow I=\left(734\right)\left(0.12\right)\left(\frac{1}{4}\right)\\ \Rightarrow I=\$22.02\end{array}$

Therefore,

Simple interest $=I=\$22.02$