Find the simple interest on $900.00 for 2 years at 6%.
Answer (2)
Calculate the principal amount: P = ( G H %900 ) /100 ∗ 900 .
Apply the simple interest formula: S I = ( P ∗ R ∗ T ) /100 , where R = 6 and T = 2 .
Simplify the formula: S I = ( P ∗ 6 ∗ 2 ) /100 = ( P ∗ 12 ) /100 .
The simple interest is S I = 1.08 ∗ ( G H %900 ) .
Explanation
Understanding the Problem Let's break down this problem. We need to find the simple interest on a principal amount that depends on the value of G H . The principal is calculated as G H percent of $900.00. The time period is 2 years, and the rate of interest is 6%.
Finding the Principal First, we need to determine the principal amount, P . The principal is given by P = ( G H %900 ) /100 ∗ 900 . The simple interest formula is S I = ( P ∗ R ∗ T ) /100 , where S I is the simple interest, P is the principal, R is the rate of interest, and T is the time period.
Calculating Simple Interest (Example 1) Let's assume G H = 100 . Then, P = ( 100%900 ) /100 ∗ 900 = ( 100/100 ) ∗ 900 = 1 ∗ 900 = 900 . Now, we calculate the simple interest: S I = ( 900 ∗ 6 ∗ 2 ) /100 = ( 900 ∗ 12 ) /100 = 10800/100 = 108 .
Calculating Simple Interest (Example 2) Let's assume G H = 1 . Then, P = ( 1%900 ) /100 ∗ 900 = ( 1/100 ) ∗ 900 = 0.01 ∗ 900 = 9 . Now, we calculate the simple interest: S I = ( 9 ∗ 6 ∗ 2 ) /100 = ( 9 ∗ 12 ) /100 = 108/100 = 1.08 .
Calculating Simple Interest (Example 3) Let's assume G H = 50 . Then, P = ( 50%900 ) /100 ∗ 900 = ( 50/100 ) ∗ 900 = 0.5 ∗ 900 = 450 . Now, we calculate the simple interest: S I = ( 450 ∗ 6 ∗ 2 ) /100 = ( 450 ∗ 12 ) /100 = 5400/100 = 54 .
Calculating Simple Interest (Example 4) Let's assume G H = 75 . Then, P = ( 75%900 ) /100 ∗ 900 = ( 75/100 ) ∗ 900 = 0.75 ∗ 900 = 675 . Now, we calculate the simple interest: S I = ( 675 ∗ 6 ∗ 2 ) /100 = ( 675 ∗ 12 ) /100 = 8100/100 = 81 .
General Formula In general, the principal amount is P = ( G H %900 ) /100 ∗ 900 , and the simple interest is S I = ( P ∗ 6 ∗ 2 ) /100 = ( P ∗ 12 ) /100 = ( 12 ∗ ( G H %900 ) ∗ 900 ) / ( 100 ∗ 100 ) = ( 10800 ∗ ( G H %900 )) /10000 = 1.08 ∗ ( G H %900 ) . Therefore, the simple interest is 1.08 times G H %900 .
Final Answer The simple interest on G H %900.00 for 2 years at 6% is 1.08 ∗ ( G H %900 ) .
Examples
Simple interest calculations are commonly used in everyday financial planning. For instance, when you deposit money in a savings account, the bank pays you interest. Similarly, when you take out a loan, you are charged interest. Understanding how simple interest is calculated helps you estimate the returns on your savings or the cost of borrowing money. For example, if you deposit $500 in a savings account with a 5% simple interest rate for 3 years, you can easily calculate the interest earned as S I = ( 500 ∗ 5 ∗ 3 ) /100 = $75 . This knowledge empowers you to make informed decisions about your finances.
The simple interest on $900.00 for 2 years at a 6% interest rate is $108.00. This is calculated using the formula for simple interest. The final result shows how much interest is earned over the given period.
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