Chapter 6, Problem 46CR

To determine

To calculate the simple interest.

Answer to Problem 46CR

$6375

Explanation of Solution

Given:

Principal: $12,750

Time: 10 years

Rate of interest: 5%

Formula used:

Simple interest, $I=prt$

Where

I is the simple interest

p is the principal

r is the rate of interest

t is the time

Calculation:

The rate of interest is 5%.

Therefore, this can be $\frac{5}{100}=0.05$

Using the given formula and substituting the given values,

  $\begin{array}{l}I=prt\\ I=12750\times 0.05\times 10\\ I=6375\end{array}$

Conclusion:

Therefore, the simple interest is $6375.