Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - Chapter Summary, Review, and Test - Review Exercises - Page 570: 29

Answer

\[\$1,200\]

Work Step by Step

Calculation of the simple interest can be done by multiplying the principal amount with the rate of interest and respective duration of time. Compute the simple interest as mentioned below: \[\begin{align} & \text{Simple interest}=\text{Principal amount}\times \text{Interest rate}\times \text{Time} \\ & =\$20,000\times0.08\times0.75\\&=\$1,200\end{align}\]
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