Question

Mr. Ford Invested $12,450 in a bank at 7.25% per annum simple interest for 6 years. calculate the interest he was paid

Answer 1

If my calculations are correct, $5415.75 of interest was paid throughout 6 years.

Explanation:

7.25% of 12,450 is 902.625.

If the interest being paid was the 7.25% of 12,450 throughout the 6 years then the answer is 902.625 x 6 ( the amount of years ) = $5415.75.

In other cases such as 7.25% of the new number of invested money after the loss of 902.625 then this answer is wrong, but I solved as I understood.

Hope this helps.