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? PS-It is not A or D

a. $6,800.00This answer is incorrect.

b. $68,000.00

c. $680.00

d. $9,180.00

Answer 1

C

Explanation:

We shall be using the formula for simple interest to calculate this

Mathematically;

I = PRT/100

where P is the amount deposited = $8,500

R is the rate = 4%

and T is the time which is 2 years

Plugging these values, we have

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