Question

How much simple interest is earned on $7500 at a rate of 3% in 5 years?

Answer 1

The rule of the simple interest is

I = Prt, where

P is the money invested

r is the rate

t is the time

In the question

P = $7500

r = 3% = 3/100 = 0.03

t = 5

Substitute these values in the equation above

`I=7500*0.03*5`

I = 1125

The interest is $1125