Determine the simple interest owed on $940 for 5 years at a rate of 16.5%

Answer :

Given:

The principal amount (P) = $940.

Rate of interest (r) = 16.5 %.

Time in years (t) = 5 years.

Required:

To determine the simple interest (I).

Explanation:

The simple interest is calculated using following formula:

[tex]I=\frac{P\times r\times t}{100}[/tex]

Substituting values, we get,

[tex]\begin{gathered} I=\frac{940\times16.5\times5}{100} \\ \Rightarrow I=\frac{77550}{100} \\ \Rightarrow I=775.5 \end{gathered}[/tex]

Final Answer:

The simple interest is,

[tex]I=775.5[/tex]