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Simple interest
Homework - Change as a percentage
Q1 – Finding simple interest
Find the simple interest on a loan of:
$6500 borrowed for 5 years at a
rate of 11% p.a.
interest =
Ответы
Відповідь:
The formula to calculate simple interest is:
Simple Interest
=
Principal
×
Rate
×
Time
100
Simple Interest=
100
Principal×Rate×Time
Where:
Principal is the initial amount of the loan ($6500 in this case)
Rate is the annual interest rate (11% per annum or 11/100 as a decimal)
Time is the duration of the loan in years (5 years in this case)
Substitute the values into the formula:
Simple Interest
=
6500
×
11
×
5
100
Simple Interest=
100
6500×11×5
Simple Interest
=
358250
100
Simple Interest=
100
358250
Simple Interest
=
3582.50
dollars
Simple Interest=3582.50dollars
Therefore, the simple interest on a loan of $6500 borrowed for 5 years at a rate of 11% per annum is $3582.50.
Now, to convert this interest into a percentage of the principal amount:
Interest as a percentage
=
Simple Interest
Principal
×
100
Interest as a percentage=
Principal
Simple Interest
×100
Interest as a percentage
=
3582.50
6500
×
100
Interest as a percentage=
6500
3582.50
×100
Interest as a percentage
≈
55.04
%
Interest as a percentage≈55.04%
So, the simple interest of $3582.50 is approximately 55.04% of the principal amount ($6500).
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