How to figure interest?

[annekadamani]

Hi I think I might have this but I'm not sure...

What is the yearly interest earned on $1600 if the interest rate is 7%? I think the answer is $112 after figuring 1600x.07x1=112. The $112 seems like it is too high could the answer possibly have a decimal and be like $11.20?

 

[JeffM]

Hi I think I might have this but I'm not sure...

What is the yearly interest earned on $1600 if the interest rate is 7%? I think the answer is $112 after figuring 1600x.07x1=112. The $112 seems like it is too high could the answer possibly have a decimal and be like $11.20?

That is the correct answer if there is no compounding (so-called simple interest).

There is a decimal: 0.07 * 1600.00 = 112.00 because dollars are computed to decimal places.

 

[annekadamani]

thanks for clearing that up for me...you're right there are no jobs at a bank in my future!

 

[HallsofIvy]

Not even robbing one? That doesn't require much mathematics!