Question

A $1,200 bond earns 3% simple interest per year on its purchase price. What is the amount of interest earned after 15 MONTHS?

Select one:
$1245
$3
$36
$45​

Answer 1

$45

Explanation:

$1,200 x 0.03% = $36 yearly

$36/12 = $3 per month

$3 x 15 months = $45

Answer 2

45$

Explanation: