Question

How much simple interest is earned on 4000 in 3.5 years at an interest rate of 1.2 %?

Option 1: $168
Option 2: $201
Option 3: $144
Option 4: $156

Answer 1

Option 1: $168. The simple interest earned on $4000 in 3.5 years at an interest rate of 1.2% is $168.

Step-by-step explanation:

To calculate the simple interest earned, we can use the formula: I = P imes R imes T, where I is the interest, P is the principal amount, R is the interest rate, and T is the time period.

Given P = $4000, R = 1.2%, and T = 3.5 years:

I = 4000 imes 0.012 imes 3.5 = $168

Therefore, the simple interest earned on $4000 in 3.5 years at an interest rate of 1.2% is $168. Hence, option 1 is the correct answer.