determine the simple interest owed on $860 for 3 years at a rate of 15.5 %. answer how to enter your answer…

determine the simple interest owed on $860 for 3 years at a rate of 15.5 %. answer how to enter your answer (opens in new window) $

determine the simple interest owed on $860 for 3 years at a rate of 15.5 %. answer how to enter your answer (opens in new window) $

Answer

Explanation:

Step1: Identify the formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the percentage to decimal

The annual interest rate $r = 15.5%=0.155$. The principal amount $P = 860$ and the time $t = 3$ years.

Step3: Substitute values into the formula

$I=Prt=860\times0.155\times3$. First, calculate $860\times0.155 = 133.3$. Then, $133.3\times3=399.9$.

Answer:

$399.9$