Question

Find the simple interest earned after 4 years on $700 at an interest rate of 5.5%.

Answer 1

The answer is

$ 154

Explanation:

The simple interest on an amount of money can be found by using the formula

`I = (principal \: * \: rate \: * \: time )/(100)`

Where I = Simple interest

From the question

principal = $ 700

time = 4 years

rate = 5.5 %

So the simple interest is

`I = (700 * 5.5 * 4)/(100) \\ = (15400)/(100)`

We have the final answer as

$ 154

Hope this helps you