Problem

32. Calculate the simple interest earned on each deposit.
(a) $\$ 350,8 \%, 2 \frac{1}{2}$ years
(b) $\$ 50,10 \frac{1}{2} \%, 18$ months
Day $3-13$

Answer

Expert–verified
Hide Steps
Answer

So, the final answers are \(\boxed{70}\) and \(\boxed{7.875}\).

Steps

Step 1 :The formula for simple interest is \(I = PRT\), where \(I\) is the interest, \(P\) is the principal amount (initial investment), \(R\) is the annual interest rate (in decimal form), and \(T\) is the time the money is invested for in years.

Step 2 :For question (a), \(P = \$350\), \(R = 8\% = 0.08\), and \(T = 2.5\) years.

Step 3 :Substitute \(P\), \(R\), and \(T\) into the formula, we get \(I = 350 \times 0.08 \times 2.5 = \$70\).

Step 4 :For question (b), \(P = \$50\), \(R = 10.5\% = 0.105\), and \(T = 18\) months = \(1.5\) years.

Step 5 :Substitute \(P\), \(R\), and \(T\) into the formula, we get \(I = 50 \times 0.105 \times 1.5 = \$7.875\).

Step 6 :The simple interest earned on the deposit for question (a) is \$70 and for question (b) is \$7.875.

Step 7 :So, the final answers are \(\boxed{70}\) and \(\boxed{7.875}\).

link_gpt