Determine the simple interest. The rate is an annual rate. Assume 360 days in a year.
pequals​$420​, requals6.75​%, tequals5.25 years
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Part 1
The simple interest is ​$
  
enter your response here.

To determine the simple interest, we use the formula:

\[
I = P \times r \times t
\]

where:
- $I$ is the simple interest,
- $P$ is the principal amount,
- $r$ is the annual interest rate (expressed as a decimal),
- $t$ is the time in years.

Given:
- $P = 420$,
- $r = 6.75\%$ or 0.0675 as a decimal,
- $t = 5.25$ years.

Now, plug the values into the formula:

\[
I = 420 \times 0.0675 \times 5.25
\]

Let's calculate the simple interest.

\[
I = 420 \times 0.0675 \times 5.25 = 149.205
\]

Thus, the simple interest is approximately **$149.21**.

### Would you like a breakdown of these steps or any further clarification?

Here are 5 related questions you can explore:
1. What is the formula for compound interest, and how does it differ from simple interest?
2. How would the interest change if the time period was in months instead of years?
3. What would happen if the interest rate increased to 7.5%? How does this affect the final interest?
4. How do you calculate the total amount owed after the interest is added to the principal?
5. How does the number of days in a year (360 vs. 365) impact interest calculations?

**Tip:** Always convert percentages to decimals when using them in formulas.

Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. P equals $420, r equals 6.75%, t equals 5.25 years.

Learn how to calculate simple interest using the formula I = P × r × t. In this problem, we determine the interest for a principal of $420, an annual rate of 6.75%, and a time period of 5.25 years. This detailed solution helps students understand key concepts in simple interest and percentage calculations.

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