Final answer:
The simple interest earned on a $300 deposit at 4% annual interest rate over 5 years is $60.00. The calculation is performed by multiplying the principal amount by the rate and the time period.
Step-by-step explanation:
To calculate the simple interest earned on a $300 deposit at a rate of 4% for 5 years, you can use the simple interest formula:
I = P * r * t
Where:
- I is the interest,
- P is the principal amount ($300),
- r is the annual interest rate (4% or 0.04),
- t is the time in years (5).
So the calculation would be:
I = $300 * 0.04 * 5
I = $60.00
Therefore, the correct answer is:
C. $60.00