Question

Investment problems

Answer 1

Answer:

B

Step-by-step explanation:

This is a simple interest problem. The formula for simple interest is:

$i=Prt$

Where

i is the interest amount

P is the principal amount

r is the rate of interest

t is the time in years

Given P, r, and t, we need to find convert r (as a percentage) to a decimal. We simply divide by 100. Shown below:

r = 7% = 7/100 = 0.07

Now, we substitute into formula and find i (interest):

$i=Prt\\i=(300)(0.07)(2)\\i=42$

Correct answer is B, $42