Question

Use the following information.

Simple interest is calculated using the formula $I=prt$, where$p$ represents the principal in dollars,$r$ represents the annual interest rate, and$t$ represents the time in years. Find the simple interest$I$ given each of the following values.

13. $p=\$1800,r=6\%,t=4years$

Short answer

Simple interest is $I=\$432$

Step-by-step solution

- Meaning of given formula I=prt

$prt$implies product of principle value, annual interest rate and time

So, interest rate can be evaluated by multiplying these three values

- Substitute given values

Substitute $\$1800$for p, $6\%$for r and 4 for t into given expression

$I=1800\times 6\%\times 4$

- Simplify 1800×6%×4

Substitute$\frac{6}{100}$ for $6\%$

$\begin{array}{c}I=1800\times \frac{6}{100}\times 4\\ =\frac{43200}{100}\\ =432\end{array}$

Thus, simple interest is$I=\$432$