Question

Help me with number 2 please!!!

Answer 1

Simple interest formula:

i = Prt

where
i = interest earned
P = principal amount invested
r = interest rate
t = time

In this problem, we are looking for i.
P = $10,000
r = 3.5% = 0.035
t = 7 years

i = Prt

i = $10,000 * 0.035 * 7 = $2,450

The amount of interest earned in the 7 years is $2,450.
The interest is added to the principal amount that was invested, so after 7 years, David has $10,000 + $2,450 = $12,450

Answer: Choice H.