Question

Calculate the simple interest paid per year on the following investments.

$3690 at 11% p.a

Answer 1

$405.90 is the simple interest per year

Answer 2

would you like a more in depth explanation?

Answer 3

this is the most delayed respond ever, sorry. but yes please.

Answer 4

Okay. Convert the interest rate into a decimal: 0.11. Then, multiply this to the amount (or principal as we say in economics), as the formula for the interest is Interest = Principle*Rate. Hence 0.11 *3960 = $405.90.

Answer 5

Thank you so much, that makes sense :)