Chapter 6.6, Problem 15IP

To determine

To find: Simple interest.

Answer to Problem 15IP

Simple interest $=I=\$919.8$

Explanation of Solution

Given information:

Principal amount $=\$4380$

Time $=2$ years.

Interest percent $=10.5\%$

Concept:

  $I=prt$

Where

  $I=$ Simple interest.

  $p=$ Principal amount

  $t=$ time in years.

  $r=$ Annual interest rate.

Calculation:

From given information

Principal amount $=p=\$4380$

Time $=t=2$ years.

Interest percent $=R=10.5\%$

We know

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

  $\begin{array}{l}\Rightarrow r=\frac{10.5}{100}\\ \Rightarrow r=0.105\end{array}$

On substituting values in above mentioned concept

We get

  $\begin{array}{l}I=prt\\ \Rightarrow I=\left(4380\right)\left(0.105\right)\left(2\right)\\ \Rightarrow I=\$919.8\end{array}$

Therefore,

Simple interest $=I=\$919.8$