Question

At the end of 3 years, how much money would you have in total if you invested $75 and earned 5% simple interest?

A.
$86.25
B.
$90
C.
$100.25
D.
$105

Answer 1

the answer is b because if you divide 5% by 75 you get 15 but when you add 15 to 75 you get $90 dollars

Answer 2

Answer:A. $86.25

Explanation:

The formula to calculate the simple interest is given by :-

`I=Prt` , P is Principal amount , r is rate of interest and t is time.

Given : P= $75 ; r= 5%=0.05 ; t=3 years

Then, the simple interest will be:-

`I=75*0.05*3=11.25`

Now, the money you have after 3years = P+I = $75+$11.25=$86.25

Hence, you would have $86.25 at the end of 3 years.