Question

Sara has $3000 to invest for 2 years .
She invests the money in a bank which pays Simple Interest at the rate of 7.5% per year .
Calculate how much interest she will receive at the end of the 2 years .

Answer 1

Prinicpal , P = $ 3000
Time , T = 2 years
Rate of interest , R = 7.5%
To find: Amount

$$\begin{gathered} \mathrm{Simple}\mathrm{interest}=\frac{\mathrm{P}\times \mathrm{R}\times \mathrm{T}}{100} \\ =\frac{3000\times 7.5\times 2}{100} \\ =\frac{3000\times 75\times 2}{100\times 10} \\ =3\times 75\times 2 \\ =\&450 \end{gathered}$$

Thus, Amount = P + S.I. = 3000 + 450 = $ 3450