Casandra is calculating how much interest she will earn in investments that are eating simple interests. She knows that simple is paid only on the original amount that was deposited (the principal). For one amount of money that was invested for three years, she wrote the equation I = 500 (0.025) (3) = $37.50. In Casandra's equation, identify the principle, interest, rate, time.

Question

Abbie Bean

Mathematics

24 September, 01:57

Casandra is calculating how much interest she will earn in investments that are eating simple interests. She knows that simple is paid only on the original amount that was deposited (the principal). For one amount of money that was invested for three years, she wrote the equation I = 500 (0.025) (3) = $37.50. In Casandra's equation, identify the principle, interest, rate, time.

+1

Answers (1)

Know the Answer?

Taco · Answer 1

Principal = $500

Interest = $37.50

Rate = 0.025 = 2.5%

Time = 3 years

Step-by-step explanation:

The formula for simple interest is I = PRT : 100

Casandra's equation = I = 500 (0.025) (3) = $37.50

Principal = $500

Interest = $37.50

Rate = 0.025 = 2.5%

Time = 3 years