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This problem involves exact simple interest in a period of more than a year and covers year 1988 which is a leap year (366days/year). Hence the calculation for each year must be separated and then summed up.
The basic formula used to calculate simple interest is: I = Prt . Here, P denotes the principal, r represents the rate of interest for one year, and t is the time in years.
SIMPLE INTEREST PROBLEMS WITH SOLUTIONS. Problem 1 : A person deposits $5,000 in a bank account which pays 6% simple interest per year. Find the value of his deposit after 4 years. Solution : Formula for simple interest is. I = Prt. Substitute P = 5000, t = 4, r = 6%. I = 5000 ⋅ 6/100 ⋅ 4.
Exact simple interest is based on the actual number of days in a year. One year is equivalent to 365 days for ordinary year and 366 days for leap year. A leap year is when the month of February is 29 days, and ordinary year when February is only 28 days. Leap year occurs every four years. Note:
Do the following simple interest problems. 1) If an amount of $2,000 is borrowed at a simple interest rate of 10% for 3 years, how much is the interest? 2) You borrow $4,500 for six months at a simple interest rate of 8%.
Learn how to solve simple interest problems using simple interest formula. There are some examples to help you do the exercises.
13 sie 2020 · Interest earned according to this formula is called simple interest. The formula we use to calculate simple interest is I = Prt. To use the simple interest formula we substitute in the values for variables that are given, and then solve for the unknown variable.
