Chapter 6.6, Problem 13IP

To determine

To find: Simple interest.

Answer to Problem 13IP

Simple interest $=I=\$242.4$

Explanation of Solution

Given information:

Principal amount $=\$2020$

Time $=18$ months.

Interest percent $=8\%$

Concept:

  $I=prt$

Where

  $I=$ Simple interest.

  $p=$ Principal amount

  $t=$ time in years.

  $r=$ Annual interest rate.

Calculation:

From given information

Principal amount $=p=\$2020$

Time $=t=18$ months.

We know

  $1$ year $=12$ months

Using that

We get

Time $=t=\frac{18}{12}=\frac{3}{2}$ years.

Interest percent $=R=8\%$

We know

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

  $\begin{array}{l}\Rightarrow r=\frac{8}{100}\\ \Rightarrow r=0.08\end{array}$

On substituting values in above mentioned concept

We get

  $\begin{array}{l}I=prt\\ \Rightarrow I=\left(202\right)\left(0.08\right)\left(\frac{3}{2}\right)\\ \Rightarrow I=\$242.4\end{array}$

Therefore,

Simple interest $=I=\$242.4$