Question

If I earn 3% simple interest for 10 years on $500, I will earn:

$150
They
$300
$15
$3
Next Page

Answer 1

$150

Explanation:

Simple interest for any principal amount p , rate of interest r and time t is given by

Simple interest = (p*r*t)/100

_________________________________

Given

p =$500

r = 3%

t = 10 years

Therefore SI = $500*3*10/100 = $150.

$150 is earned in 10 years at 3% simple interest on $500.