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30 October, 12:26

Suppose Cho deposits $200 into a bank account for 3 years. The annual interest rate is 5%. Find the simple interest earned.

A.

$30

B.

$100

C.

$10

D.

$300

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Answers (1)
  1. 30 October, 15:02
    0
    Simple interest is given by the formula:

    S. I=PRT/100

    where:

    P=principle

    R=rate

    T=time

    From the information given:

    P=$200, r=5%, t=3 years.

    Plugging into the formula we obtain:

    A=200*5/100*3

    simplifying we obtain:

    A=$30

    Answer is: A] $30
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