Question

In the situation, simple interest is calculated yearly.

How much interest was earned?

Drag and drop the answer into the box.

Principal: $5500; Time: 8 years; Interest rate: 2.5%; Interest: ?

Answer choices:
A. $137.50 

B. $1,100

C. 5,500

D. 6,600

E. 44,000

Answer 1

1/100

I took test it was right

Answer 2

Answer: $1,100 will be the interest.

Explanation: Since, we know that, Simple interest on annually rate for an initial amount P is,
`I=(P* r* t)/(100)`

Where,

r= rate of interest and t= number of years.

Here, P= $5,500 r= 2.5% and t=8 years.

Thus, simple interest =
`(5500* 2.5* 8)/(100)= 55* 2.5* 8=1100`

So, Simple interest is $1100.

Therefore, option B is correct.