Answer :
To find the simple interest on [tex]$7,000 for 5 years at a rate of 3% per annum, you can use the formula for simple interest:
\[ \text{Simple Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]
Let's break it down step-by-step:
1. Principal (P): This is the initial amount of money, which in this case is $[/tex]7,000.
2. Rate (R): This is the annual interest rate. We are given a rate of 3%, which we need to convert to a decimal for the formula. To do this, divide the percentage by 100:
[tex]\[ 3\% = \frac{3}{100} = 0.03 \][/tex]
3. Time (T): This is the period for which the money is borrowed or invested, which in this case is 5 years.
Now, plug these values into the simple interest formula:
[tex]\[ \text{Simple Interest} = 7000 \times 0.03 \times 5 \][/tex]
4. Calculation:
- First, multiply the principal by the rate:
[tex]\[ 7000 \times 0.03 = 210 \][/tex]
- Then, multiply the result by the time in years:
[tex]\[ 210 \times 5 = 1050 \][/tex]
So, the simple interest on [tex]$7,000 for 5 years at an annual interest rate of 3% is $[/tex]1,050.
\[ \text{Simple Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]
Let's break it down step-by-step:
1. Principal (P): This is the initial amount of money, which in this case is $[/tex]7,000.
2. Rate (R): This is the annual interest rate. We are given a rate of 3%, which we need to convert to a decimal for the formula. To do this, divide the percentage by 100:
[tex]\[ 3\% = \frac{3}{100} = 0.03 \][/tex]
3. Time (T): This is the period for which the money is borrowed or invested, which in this case is 5 years.
Now, plug these values into the simple interest formula:
[tex]\[ \text{Simple Interest} = 7000 \times 0.03 \times 5 \][/tex]
4. Calculation:
- First, multiply the principal by the rate:
[tex]\[ 7000 \times 0.03 = 210 \][/tex]
- Then, multiply the result by the time in years:
[tex]\[ 210 \times 5 = 1050 \][/tex]
So, the simple interest on [tex]$7,000 for 5 years at an annual interest rate of 3% is $[/tex]1,050.
