Question

What is the simple interest paid to the nearest cent for each principal, interest rate, and time? $300, 6 1/2 %, 1 year *

1 point
$19.50
$195
$319.50
$1,950

Answer 1

The correct answer is: Option 1: $19.50

Explanation:

Simple interest is given by the formula:

`I = Prt`

Here

P is the principal amount

r is the interest rate

and t is the time in years

Given

P = 300

r = 6 1/2 = 6.5%

t = 1

Putting the values in the formula, we get

`I = 300 * 0.065*1\\I = 19.5`

The simple interest paid to the nearest cent is 19.50 dollars.

Hence,

The correct answer is: Option 1: $19.50