Solve the given problem, using the formula $I = P R T :$ Find the simple interest paid on a Ioan of $\$ 1,200$ at $8 \frac { 1 } { 4 } \%$ interest for 5 years.
A)$49.50
B)$4.95
C)$495
D)$4,950

Question

Quizplus · Accepted Answer

First convert the given interest rate to a decimal:
$$8 \frac{1}{4}\% = 0.0825$$
Then substitute the given values into the formula:
$$I = P R T = (1200)(0.0825)(5) = 495$$
Therefore, the simple interest paid is $$495$. The correct answer choice is C.

Solve the Given Problem, Using the Formula I=PRT:I = P R T :I=PRT:

Solve the Given Problem, Using the Formula $I = P R T :$