Problema Solution

When principal ℗ is invested at a rate of ® over a period of time (t) in years, simple interest (l) is earned. the simple interest is calculated by multiplying the principal, rate, and time. Write an equation to represent this scenario.

Using the formula above, calculate the interest earned for an investment of $15,000 at a rate of 5% over 10 years.

Answer provided by our tutors

P = $15,000

r = 0.05 or 5%

t = 10 years

I = the interest earned


I = P*r*t


I = 15000*0.05*10


I = $7,500