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Usimov [2.4K]
3 years ago
15

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

Mathematics
1 answer:
Fiesta28 [93]3 years ago
8 0

Option A

The simple interest earned is $ 105

<em><u>Solution:</u></em>

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

Therefore,

Principal = $ 300

Rate of interest = 5 %

Number of years = 7

<em><u>The simple interest is given by formula:</u></em>

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

<em><u>Substituting the values in formula,</u></em>

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

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