So the problem is ; Find the interest on $1590 that is invested at 8% for 3 years.Round to the nearest cent.
Can you help me using the same problem and tell me how to do it step by step so i can understand.
Thanks
You have not said whether this is a
simple interest problem or a
compound interest problem. Since you posted this in the Pre-Algebra forum, I will GUESS that it is simple interest.
You should have learned a formula for simple interest that looks like this:
I = p * r * t
"I" stands for the interest earned
"p" stands for the principal, or the amount invested
"r" stands for the interest rate, and it is very important to realize that the interest rate must be expressed as a decimal. For example, an interest rate of 5% would be expressed as 0.05
"t" stands for the time
in years
Now, read your problem carefully. You will see that the principal is given, the interest rate is given (but you'll need to re-write it as a decimal), and the time in years is given.
Substitute those values into the formula, and do the arithmetic.
I'll show you how a SIMILAR problem would look: find the interest earned in 6 years if $2500 is invested at 3% simple interest.
In this problem, the principal is $2500, the interest rate expressed as a decimal is 0.03, and the time in years is 6. We are looking for the interest earned.
I = p*r*t
I = 2500 * 0.03 * 6
Do the arithmetic. Multiply 2500 times 0.03 times 6, and you get
I = 450
The interest earned on $2500 invested at 3% simple interest for 6 years is $450.
Try your problem the same way.
