Question

Calculate the simple interest earned on an investment of $1560 at 3% per year for 5 years. Give the answer to the nearest cent.

Answer 1

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Answer:

$234.00

Explanation:

Simple interest is computed using the formula ...

I = Prt

when principal P is invested at annual rate r for t years.

i = $1560×0.03×5 = $234.00

The interest earned is $234.00.