Answer:
The interest paid is Simple Interest
Step-by-step explanation:
Given:
Principal amount = $3400
rate of interest = 4.5%
Number of Months = 15 months
To Find:
interest =?
Solution:
Simple Interest is earned or paid on the Principal only.
Simple Interest = [tex]P \times r\times n[/tex]
Substituting the values,
Simple Interest = [tex] 3400\times 4.5%\times 15[/tex]
Simple Interest = [tex] 3400\times \frac{4.5}{100}\times 15[/tex]
Simple Interest = [tex] 3400\times 0.045\times 15[/tex]
Simple Interest = [tex] 3400\times 0.675 [/tex]
Simple Interest = 2295
