Question

What is the interest earned on $3,000 at a rate of 0.04 for 3 years? (Hint: Use the formula i = prt, where i represents the interest earned, p represents the principal, r represents the rate, and t represents the time.) $360 $3,003.04 $3,360 $120

Answer 1

Answer:

$360.

Step-by-step explanation:

The interest earned on principal P, at the rate of r for the duration of t years is given by the equation I = Prt ........... (1)

Now, we have to calculate the interest earned on $3000, at the rate of 0.04 for 3 years.

Here, P = $3000, r = 0.04 and t = 3 years.

Hence, from equation (1), Interest earned, I = 3000 × 0.04 × 3 = $360 (Answer)