What is the the principal plus the interest for $300 borrowed at 6% for 1 year and $5,000 borrowed at 7.5% for 6 months?

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justaguide's profile pic

justaguide | College Teacher | (Level 2) Distinguished Educator

Posted on

$300 borrowed for 1 year at 6% incurs an interest of $300*0.06 = $18. The total amount including the principal and the interest is $318.

$5,000 borrowed at 7.5% for 6 months incurs an interest of $5000*0.075/2 = 187.5. The total amount including the principal and the interest is $5187.5

The amount in the first case is $318 and in the second it is $5187.5

revolution's profile pic

revolution | College Teacher | (Level 1) Valedictorian

Posted on

The formula for simple interest is:

simple interest= (prinicipal amount * interest rate * period)/100

1) simple interest= (300*6*1)/100= $18. Totsl amt.= $318

2) simple interest= (5000* 7.5*1/2)/100 = $187.50 Total amt.= $5187.50

janelle73077's profile pic

janelle73077 | Teacher | eNotes Newbie

Posted on

The formula for simple interest is

Interest = Principal x rate x time

1)  $300 x .06 x 1 = $18 interest for a total of $318.00

2)  $5000 x .075 x .5 = $187.50 interest for a total of $5187.50

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