Question

Jennifer invested $12,000 in an account that pays 5% annual simple interest. She will not make any additional deposits or withdrawals. How much interest will Jennifer earn on her investment at the end of 3 years? A $650.00 B $800.00 C $ 1,800.00 D $ 13,891.50

Answer 1

C $ 1,800.00

Explanation:

Using the formula for calculating simple interest:

Simple interest = PRT/100

P is the principal (amount invested) = $12,000

R is the rate = 5%

T is the time = 3years

Substitute

Simple interest = 12000*5*3/100

Simple interest = 120*5*3

Simple interest = $1800

Hence Jennifer will earn $1800 on her investment