Question

Question 1 Find the simple interest earned, to the nearest cent, for the principal, interest rate, and time. $530, 6%, 1 year.

Answer 1

You can find the simple interest using the following formula:

I = PV*r*t

Where:

PV = Present value or principal = $530

r = interest rate = 6% = 0.06

t = time = 1

Replacing the data into the equation:

I = 530*0.06*1 = $31.8