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 $\\$5900$ is invested at $10\frac{1}{2}\\%$ (or $0.105$) for four years. $i = \\$\square$ (round to the nearest dollar as needed )

Explanation:

Step1: Identify the values of P, R, and T

Given that the principal \( P = \$5900 \), the interest rate \( R = 0.105 \), and the time \( T = 4 \) years.

Step2: Apply the simple interest formula \( I = PRT \)

Substitute the values of \( P \), \( R \), and \( T \) into the formula:
\( I = 5900 \times 0.105 \times 4 \)
First, calculate \( 5900 \times 0.105 \):
\( 5900 \times 0.105 = 619.5 \)
Then, multiply the result by 4:
\( 619.5 \times 4 = 2478 \)

Answer:

\( \$2478 \)