Question

What is the simple interest on $500 at 9% for 2 years?

Answer 1

Given:

P = 500 dollars

R = 9% = 0.09

T = 2 years

Required:

Simple interest = ?

Explanation:

The formula for simple interest is

$\begin{gathered} Simple\text{ }interest=\frac{P\times R\times T}{100} \\ \\ Simple\text{ }interest=\frac{500\times9\times2}{100}=\frac{500\times18}{100}=5\times18 \\ \\ Simple\text{ }interest=90 \end{gathered}$

Final answer:

The simple interest for 2 years is 90 dollars