Question

Find the simple interest earned in an account with $300 at 5% annual interest for 7 years.

Answer 1

Option A

The simple interest earned is $ 105

Solution:

Given that, $300 at 5% annual interest for 7 years

Therefore,

Principal = $ 300

Rate of interest = 5 %

Number of years = 7

The simple interest is given by formula:

$Simple\ Interest = \frac{p \times n \times r }{100}$

Where,

p is the principal

r is the rate of interest

n is the number of years

Substituting the values in formula,

$Simple\ Interest = \frac{300 \times 7 \times 5 }{100}\\\\Simple\ Interest = 3 \times 7 \times 5\\\\Simple\ Interest = 105$

Thus simple interest earned is $ 105