Determine the simple interest owed on \( \$ 740 \) for 3 years at a rate of \( 15.5 \% \)

To calculate the simple interest, you can use the formula: \[ \text{Interest} = P \times r \times t \] where \( P \) is the principal amount (\$740), \( r \) is the rate (15.5%, or 0.155 as a decimal), and \( t \) is the time in years (3 years). Plugging in the values: \[ \text{Interest} = 740 \times 0.155 \times 3 = 343.35 \] So, the simple interest owed on \$740 for 3 years at a rate of 15.5% is \$343.35. Did you know that simple interest calculation has been around for centuries? Ancient civilizations, such as the Babylonians, used similar methods for trade and loans. They understood the value of lending and the cost of borrowing well before modern banking systems emerged! For practical application, you can use this simple interest formula when evaluating loans for personal finance, car purchases, or even when considering investments where the interest is straightforward. It's a handy tool to calculate how much you’ll owe over time without the complexities of compound interest!