Question

for the following problem, use the formula $i = prt$, where $i$ is interest in dollars, $p$ is the principal or loan amount, $r$ is the interest rate, and $t$ is the time in years.

find the interest if principal of $3100 is invested at $5\frac{1}{2}%$ (or 0.055) for three years.

$i = $\square$ (round to the nearest dollar as needed.)

Explanation:

Step1: Identify values of P, R, T

Given \( P = 3100 \), \( R = 0.055 \), \( T = 3 \).

Step2: Apply formula \( I = PRT \)

Substitute values: \( I = 3100 \times 0.055 \times 3 \)
First, calculate \( 3100 \times 0.055 = 170.5 \)
Then, \( 170.5 \times 3 = 511.5 \)

Step3: Round to nearest dollar

\( 511.5 \approx 512 \)

Answer:

\( 512 \)