Question

What is the simple interest earned on $720 with an interest rate of 5% for 2 years?

A) 74
B) 73
C) 75
D) 72

Answer 1

The simple interest earned on $720 with an interest rate of 5% for 2 years is $72.

Step-by-step explanation:

To calculate the simple interest earned on $720 with an interest rate of 5% for 2 years, we can use the formula: Simple Interest = Principal x Rate x Time.

Substituting the given values into the formula, we have: Simple Interest = $720 x 0.05 x 2 = $72.

Therefore, the simple interest earned is $72. So the correct answer is option D) 72.