Question

An account earns 3% yearly simple interest. How much interest will you earn in 5 years if you put $820 in the account

A. $130.60
B. $ 123.00
C. $943.00
D. $950.60

Answer 1

The correct answer is B. $123

Answer 2

`the \: interest \: is \: 123.00(option \: b)`

Explanation:

`rate = 3\% \\ time = 5years \\ principal = 820`

`interest = (principal \: * rate \: * \: time)/(100)`

`interest = (820 * 5 * 3)/(100)`

`the \: interest \: is \: 123`