Question

What is the simple interest earned on $3,672 at 4.5% for three years?

$459.72


$594.86


$518.36


$495.72

Answer 1

It would be the first answer 459.72

Answer 2

Answer: interest at the end of 3 years is $495.72

Explanation:

The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents interest rate

T represents time in years

I = interest after t years

From the information given

T = 3 years

P = $3,672

R = 4.5%

Therefore

I = (3672 × 4.5 × 3)/100

I = 49572/100

I = 495.72