Question

Frances lent her sister $350 at a simple annual interest rate of 3%. how much interest will frances earn at the end of 5 years?

Answer 1

The answer is $52.50

Explanation:

Frances lent her sister $350 at a simple annual interest rate of 3%. How much interest will Frances earn at the end of 5 years?

Answer 2

3% of 350 is 10.5. Because we're only calculating simple interest we multiply this by 5 to give $52.50 interest after 5 years. Therefore Frances will have earned $52.50.