Problema Solution

Determine the simple interest on an account paying 6.5% annually interest of an investment of $5,250.

Answer provided by our tutors

We will determine the simple interest for 1 year.

r = 0.065 or 6.5%

P = $5,250 the principal

t = 1 yr

I = the interest

I = P*r*t

I = 5250*0.065*1

I = $341.25