Lesson 8 homework practice financial literacy answer key
How do you calculate simple interest?
Find, to the nearest cent, the simple interest paid on each loan, the interest rate, and the time. 6.9% of $2,500 for 6 months
Here’s how to get to the answer, which is $86.25:
In this particular question,
Time = half a year, or 6 months.
The rate of interest is 6.9%
Simple interest is interest that is only added to the original amount of money that was borrowed or deposited. To figure it out, you multiply the interest rate by the principal payment and then by the number of years. Simple interest doesn’t grow over time, so investments grow more slowly.