Question

Karl is offered a simple interest rate of 5% at a local bank. He deposited $900.

Which statement is true?




Karl will earn $270 as an interest after 4 years.

Karl will earn $120 as an interest after 3 years.

Karl will earn $14 as an interest after 1 year.

Karl will earn $90 as an interest after 2 years.

Answer 1

It may be helpful to organize the information by listing all four variables and filling in ... Find the simple interest earned after 3 years on $500 at an interest rate of 6%. ... Find the simple interest earned after 4 years on $800 at an interest rate of 5%. ... We will use the simple interest formula to find the principal.

Explanation: