Question 488896
.
what is the interest if the Principal is $720, the Rate is 5 1/4% and the Time is 3 years?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~



        Tutor @Theo treats this problem as discretely compound or continuously compound,
        but  NOTHING  in this problem points to these ways compounding.


        In my view,  there is  NO  COMPOUNDING  in this problem,  at all,

        and by default,  we should treat this problem as simple interest.



<pre>
For simple interest, the formula for the interest is

    I = P*r*t,


where P is the principal, r is the rate as the decimal and 't' is time in years.


So, we substitute the input values into this formula, and we get for the interest

    i = 720*0.0525*3 = 113.40 dollars.


<U>ANSWER</U>.  The interest is $113.40.
</pre>

Solved.