Arithmetic Reasoning
Yesterday I presented a question on interest rate. Jenny put $600 in the bank for 5 years and earned 3% in interest. How much interest did she earn?
As an ASVAB tutor, one of the topics I cover in Arithmetic Reasoning is interest rate. To solve this problem, it is important to know the formula for interest rate.
The formula is I = p x r x t
Interest = principal x rate x time
In this example, the principal is $600, the rate is 3% which needs to be written as a decimal .03, and the time is 5 years.
I = 600 x .03 x 5
600 x 5 = 3000
3000 x .03 = $90
Interest = $90
