Question

Trish takes out a furniture loan of $5500 and a simple interest rate of 6% per year which of the following is closest to the amount of interest she will owe after 2.5 years

F. $825.00 G. $8,043.75 H. $80.44 J. $643.50

Answer 1

F

Explanation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year,

then, solving our equation

I = 5500 × 0.06 × 2.5 = 825

I = $ 825.00

The simple interest accumulated

on a principal of $ 5,500.00

at a rate of 6% per year

for 2.5 years is $ 825.00.