Question

How much simple interest is earned on $6000 principal, with an annual interest rate of 3.7% over 5 years?

simple interest: I = P • r • t



A. $7195.24

B. $1195.24

C. $1110.00

D. $7110.00
What is 5 years as a decimal?

Answer 1

Data:
I = ?
P = $6000
rate = 3.7% = 0.037
t = 5
Answer (C)
simple interest = $1110.00

Answer 2

I = PRT
P (principal) = 6000
R (rate) = 3.7%.....u need decimal form = 0.037
T (time) = 5

I = (6000)(0.037)(5)
I = 1110.00 <===

u dont need years as a decimal...u need rate as a decimal