1. Suppose a bank is offering its customers 3% interest on savings accounts.

If a customer deposits $1500 in the account, how much interest does the customer earn in 5 years? Solution: In this problem, we are given the interest rate (r), the amount put into the account (P), and the amount of time (t). However, before we can put these values into our formula, we must change the 3% to a decimal and make it 0.03. Now we are ready to go to the formula.

So after 5 years, the account has earned $225 in interest. If we want to find out the total amount in the account, we would need to add the interest to the original amount. In this case, there would be $1725 in the account. 2. Robert deposits $ 3000 in State Bank of India for 3 year which earn him an interest of 8%.What is the amount he gets after 1 year, 2 years and 3 years? Solution: In every $ 100, Robert gets $ 8. (Since rate is 8% 8 for every 100) Therefore, for $ 1 he gets = $ 8/100 And for $ 2000 he gets = 3000 x 8/100 = $ 240 Simple Interest for 1 year = $ 240. Simple Interest for 2 year = $ 240 x 2 = $ 480 Simple Interest for 3 year = $ 240 x 3= $ 720 Therefore, Amount after 1 year = Principal (P) + Simple Interest (SI)= 3000 + 240 = $ 3240 Amount after 2 years = Principal (P) + Simple Interest (SI) = 3000 + 480 = $ 3480 Amount after 3 years = Principal (P) + Simple Interest (SI) = 3000 + 720 = $ 3720 3. Diego deposited $ 10000 for 4 year at a rate of 6% p.a. Find the interest and amount Diego got. Solution: Principal (P) = $ 10000, Time (T) = 4 years, Rate (R) = 6% p.a. Simple Interest (SI) = {Principal (P) Rate (R) Time (T)}/100 = (10000 x 6 x 4)/100 = $ 2400 Amount (A) = Principal (P) + Interest (I) = 10000 + 2400 = $ 12400 The interest Diego got is $ 2400. Therefore, the amount Diego got is $ 12400.

4. Seth invested a certain amount of money and got back an amount of $ 8400. If the bank paid an interest of $ 700, find the amount Sam invested. Solution: Amount (A) = $ 8400, Simple Interest (SI) = $ 700 Principal (P) = Amount (A) Interest (I) = 8400 700 = 7700 Therefore, Seth invested $ 7700. 5. Richard deposits $ 5400 and got back an amount of $ 6000 after a year. Find the simple interest he got. Solution: Principal (P) = $ 5400, Amount (A) = $ 6000 Simple Interest (SI) = Amount (A) Principal (P) = 6000 5400 = 600 Therefore, Richard got an interest of $ 600.