~ Calculate the amount of interest you'll have at the end of the indicated period.~
Question: You invest $98,600 in an account that pays simple interest of 3% for 2 years?
the answer is $5916.00, i just need help with how to do the problem. Thanks!
2007-11-04 02:39:28 · 9 answers · asked by cassie05 3 in Science & Mathematics ➔ Mathematics
2*98600(0.03) = $5916.00
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Ideas: Simple interest means that every year you get the same amount of interest.
2007-11-04 02:44:12 · answer #1 · answered by sahsjing 7 · 0⤊ 0⤋
Simple interest=Principal*Rate*Time
Interest=98,600*3%*2=5916.00
2007-11-04 11:02:49 · answer #2 · answered by TAMMY 3 · 0⤊ 0⤋
ah thats an easy one.
3% = 0.03
multiply 98,600 by 0.03 (3%) then multiply by 2.
the formula is PRT i believe, principle x the rate x the time. when you have the 3% just change it to a fraction.
2007-11-04 10:48:13 · answer #3 · answered by Chris 2 · 0⤊ 0⤋
Multiply 98,600 x .03 x 2 = 5916
With "simple" interest the calculation is easy since the interest is not figured on the interest.
With "compound" interest you earn interest on the interest.
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2007-11-04 10:42:52 · answer #4 · answered by Barkley Hound 7 · 0⤊ 1⤋
The simple interest formula is:
Interest = Principal * Rate * Time
Principal is the amount invested
Rate is the interest rate as a decimal
Time is the number of years
In your problem I = 98600 * 0.03 * 2
I = $5916.00
2007-11-04 10:45:34 · answer #5 · answered by Scott K 2 · 0⤊ 0⤋
I = PRT
Interest = 98,600(0.03)(2)
Interest = 98,600(0.06)
Interest = 986 * 6
Interest = $5916.00
2007-11-04 10:44:16 · answer #6 · answered by UnknownD 6 · 0⤊ 0⤋
Interest = Principal * Rate * Time
Principal is the amount invested
Rate is the interest rate as a decimal
Time is the number of years
In your problem I = 98600 * 0.03 * 2
I = $5916.00
2007-11-04 10:50:19 · answer #7 · answered by hockeyman25158 2 · 0⤊ 0⤋
I= Prt
I = 98,600*.03*2 = $5916
2007-11-04 10:45:36 · answer #8 · answered by ironduke8159 7 · 0⤊ 0⤋
98,600.00 x 24 (months) x .03/24 (rate/months) x 2 (years) = $5,916.00.
2007-11-04 10:48:26 · answer #9 · answered by khaotic_spirit 1 · 0⤊ 0⤋