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Justin loans his uncle 2,500. He changes 6.5% simple interest. His uncle pays him back in 2.5 years. How much interest does his uncle pay?

Sagot :

Absor201idn

Answer:

The simple interest accumulated  on a principal of $ 2,500 at a rate of 6.25% per year  for 2.5 years is $ 390.63.

Step-by-step explanation:

Given

  • Principle P = $2,500
  • Interest rate r = 6.5% = 0.065
  • Time period = t = 2.5 years

To determine

Interest I = ?

Using the simple interest formula

I = Prt

substituting P = 2,500, r = 0.065 and t = 2.5

I = 2500 × 0.0625 × 2.5

I = 390.63

Thus,

I = $390.63

Therefore, the simple interest accumulated  on a principal of $ 2,500 at a rate of 6.25% per year  for 2.5 years is $ 390.63.

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