Question

Compute the amount of interest earned in the following simple interest problem. A deposit of $800 at 3.5% for 7 years = _____.

a $159.99
b $196.00
c $1,599.99
d $1,960.00

Answer 1

I just learned this.


The answer is b

Answer 2

Option: b is the correct answer.

b. $ 196.00

Explanation:

The principal amount is given by: P=$ 800

The rate of interest is given by: R=3.5%

The time period is given by: T=7 years.

We know that the simple interest(S.I.) on a principal amount P at some rate of interest R and for a time period T is calculated by the formula:

`S.I.=(P* R* T)/(100)`

Hence, we get:

`S.I.=(800* 3.5* 7)/(100)\\\\\\S.I.=196`

The amount of interest earned in the following simple interest problem is:

b. $ 196.00