Chapter SH, Problem 7.7.1EP

To determine

To calculate:To find the simple interest to the nearest cent

Answer to Problem 7.7.1EP

Simple interest is $\$165$

Explanation of Solution

Given information: $\$1100$ at $5\%$ for $3$ years

Formula used:

Simple interest is calculated as

  $SI=\frac{P\times R\times T}{100}$

Where,

  $P=$ Principal

  $R=$ Rate of Interest

  $T=$ Time in years

Calculation:

Given that $\$1100$ at $5\%$ for $3$ years

  $\begin{array}{l}P=\$1100\\ R=5\%\\ T=3years\end{array}$

Simple Interest is calculated as

  $SI=\frac{P\times R\times T}{100}$

Substituting the values,

  $\begin{array}{l}SI=\frac{1100\times 5\times 3}{100}\\ SI=11\times 5\times 3\\ SI=165\end{array}$

Conclusion:

Hence, simple interest is $\$165$