Question

Sonny deposited $8,500 in an account that earns 4% simple interest. If Sonny makes no more deposits or withdrawals, then how much interest will he earn at the end of 2 years?

answer choices

a $68,00.00
b $68,000.00
c $680.00
d $9,180.00

Answer 1

C

Explanation:

In this question, we are tasked with calculating the simple interest on an amount of money that was saved for two years.

Mathematically, simple interest can be calculated using the formula;

I = PRT/100

Where I is the amount of interest earned which we are trying to calculate

P is the principal which is the amount saved originally which is $8,500

R is the rate which is 4%

T is the time taken which is 2 years

Plugging these values, we have;

I = (8500 * 4 * 2)/100 = 68000/100 = $680

Answer 2

Answer: $680.00

Explanation:

Principal= 8500

Rate= 4%

Time= 2 years

Interest= (Principal×Rate×Time)/100

= (8500×4×2)/100

= 68000/100

= $680

The interest is $680