Percent Applications Math Example 2

Follow the full solution, then compare it with the other examples linked below.

Example 2

medium
Emma borrows \2000atasimpleinterestrateof at a simple interest rate of 4.5\%peryearfor per year for 3$ years. How much total interest does she pay, and what is the total amount repaid?

Solution

  1. 1
    Use the simple interest formula: I=PrtI = Prt where P=2000P = 2000, r=0.045r = 0.045, t=3t = 3.
  2. 2
    Interest: I=2000ร—0.045ร—3=270I = 2000 \times 0.045 \times 3 = 270.
  3. 3
    Total repaid: A = P + I = 2000 + 270 = \2270$.

Answer

I=$270,A=$2270I = \$270,\quad A = \$2270
Simple interest is calculated on the principal only (not on accumulated interest). The formula I=PrtI = Prt keeps the interest proportional to the principal, the rate, and the time period.

About Percent Applications

Using percentages to solve real-world problems involving tax, tip, discount, markup, and simple interest.

Learn more about Percent Applications โ†’

More Percent Applications Examples

Example 1 easy

A restaurant bill is [formula]56[formula]15%$ tip. What is the tip amount and the total paid?

Example 3 easy

A pair of shoes costs [formula]72[formula]8%$ sales tax. What is the final price?

Example 4 hard

A clothing store marks up items by [formula] of the wholesale cost and then offers a [formula] disco

โ† All Percent Applications Examples Percent Applications Concept