What will be the simple interest on a principal of $2500 at a rate of 8% per ann

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Question: What will be the simple interest on a principal of $2500 at a rate of 8% per annum for 4 years?

Options:

Correct Answer: $700

Solution:

Simple Interest = (2500 * 8 * 4) / 100 = $800.

What will be the simple interest on a principal of $2500 at a rate of 8% per annum for 4 years?

What will be the simple interest on a principal of $2500 at a rate of 8% per annum for 4 years?

Step 1: Identify the principal amount, which is $2500.
Step 2: Identify the interest rate, which is 8%.
Step 3: Identify the time period, which is 4 years.
Step 4: Use the simple interest formula: Simple Interest = (Principal * Rate * Time) / 100.
Step 5: Plug in the values: Simple Interest = (2500 * 8 * 4) / 100.
Step 6: Calculate the multiplication: 2500 * 8 = 20000, then 20000 * 4 = 80000.
Step 7: Divide by 100: 80000 / 100 = 800.
Step 8: The simple interest is $800.

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