Question

Using the formula for simple interest, I = PRT. If you put $6.57 into a savings account that earns 6%, how much interest will you receive at the end of seven years?

a) $2.36
b) $2.57
c) $2.99
d) $3.00

Answer 1

The interest received on a $6.57 deposit at a 6% annual rate over seven years is calculated using I = PRT, resulting in approximately $2.90, with option c) $2.99 being the nearest correct answer.

Step-by-step explanation:

Using the simple interest formula, I = PRT, we can calculate the interest earned on a deposit. In this question, you have deposited $6.57 into a savings account with an annual interest rate of 6%, and you want to find out how much interest you will receive at the end of seven years.

To solve this, plug in the numbers into the formula: I = PRT, where P is the principal ($6.57), R is the rate (0.06), and T is the time in years (7).

Therefore, I = $6.57 \u00d7 0.06 \u00d7 7.

Multiplying these together, I = $2.9038.

After rounding to the nearest cent, you would receive approximately $2.90 in interest at the end of seven years. Thus, option c) $2.99 would be the closest correct answer.