Question

4) A bank is offering 3.5% simple interest on a savings account. If you deposit

Answer 1

Answer:

B. $840

Step-by-step explanation:

Given that

Rate of simple interest = 3.5%

Principal amount = $12,000

Time = 2 year

To find:

Interest earned = ?

Solution:

Formula for Simple Interest is given as:

$S.I. = \dfrac{PRT}{100}$

Where P is the principal amount

R is the annual Rate of interest

T is the time for which principal was invested.

Here, we are given that:

P = $12,000

R = 3.5%

T = 2 years

Putting all the values in the formula:

$SI= \dfrac{12000\times 3.5 \times 2}{100}\\\Rightarrow SI= 12\times 35 \times 2\\\Rightarrow SI = \ 840$

So, answer is:

B. $840