Using the formula I=Pxrxt P is the principal amount, $9000.00. r is the interest rate, 5% per year, or in decimal form, 5/100=0.05. t is the time involved, 1....year(s) time periods. So, t is 1....year time periods. To find the simple interest, we multiply 9000 × 0.05 × 1 to get that:
The interest is: $450.00 So the balance will be $9450.00 at the end of the first year.
