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28 August, 13:28

Caleb invested $8700 in a savings account with a yearly interest rate of 3% for 7 years. How much simple interest did he earn?

A. $193 B. $1827 C. $1675 D. $441

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  1. 28 August, 15:41
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    Simple interest formula

    i = prt

    where i = interest earned, p = principal amount (of money invested), r = annual interest rate, t = time in years

    i = prt

    i = 8700 * 0.03 * 7

    i = 1827

    Answer: B. $1827
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