Q13. - Algebra 2

Question

Use the following information.

Simple interest is calculated using the formula $I=prt$, where $p$ represents the principal in dollars, $r$ represents the annual interest rate, and $t$ represents the time in years. Find the simple interest $I$ given each of the following values.

13. $p=\$1800,r=6\%,t=4years$

Step-by-Step Solution

Answer

Simple interest is  $I=\$432$

Step 1 - Meaning of given formula I = p r t

$prt$ implies product of principle value, annual interest rate and time 

So, interest rate can be evaluated by multiplying these three values

Step 2 - Substitute given values

Substitute $\$1800$for p, $6\%$for r and 4 for t into given expression

 $I=1800\times 6\%\times 4$

Step 3 - Simplify 1800 × 6 % × 4

Substitute $\frac{6}{100}$ for  $6\%$

 $\begin{array}{c}I=1800\times \frac{6}{100}\times 4\\ =\frac{43200}{100}\\ =432\end{array}$

Thus, simple interest is $I=\$432$