The Principal Interest Rate $12,000, interest rate 4.25%, and Time 5 years, what is the simple interest?

Answer 1

After #5# years at a rate of #4.25%#, #$12,000# will earn #$2,550# interest.

The equation for determining basic interest is

#I = prt#

where #I# is the interest earned, #p# is the principal, #r# is the interest rate expressed as a decimal, and #t# is the time of the investment expressed in years.

For the information given and requested, fill in the values in the appropriate positions and multiply. Remember that #4.25% = 0.0425# as a decimal.

#I = 12000(0.0425)(5)# #I = 2550#

So, in #5# years at a rate of #4.25%#, #$12,000# will earn #$2,550# in interest.

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Answer 2

Abigail Allen

To calculate the simple interest, you can use the formula:

Simple Interest = Principal × Rate × Time

Substitute the given values into the formula:

Simple Interest = $12,000 × 0.0425 × 5

Calculate:

Simple Interest = $12,000 × 0.0425 × 5 =$ 2,550

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Answer from HIX Tutor

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.