What is the amount of interest of 75,000 at 3.45% per year, at the end of 12 years and 6 months?
Accepted Solution
A:
The formula for simple interest is:
$$ I=\frac{P\times t\times r}{100} $$
Given P = $75000, t = 12.5 years, and r = 3.45% or 0.0345:
$$ I=\frac{75000\times12.5\times0.0345}{100}=323.4375 $$