Question

Dylan opened a savings account with $1,250. How much simple interest will he earn if he leaves the money in the account for three years at an interest rate of 0.03? Use the formula i = prt. $112.50 $1,125.00 $37.50 $75.00

Answer 1

$112.50

Explanation:

So first you will need to understand I=PRT,
`I` stands for the interest on the original investment, P stands for the amount of the original investment, R stands for the interest rate which is supposed to be in decimal form, and T is the time or the number of years you leave the money.

So the equation if you plug in everything would be I= 1,250 times 0.03 times 3. So if you multiply all of the numbers together you would get $112.50. And that is the correct answer