Question

What is the annual interest for a principal of $3,500 at a simple annual interest

rate of 2.3%?

Answer 1

Explanation:

Given principal p =$3500

Time t =1 year

Rate of interest r =2.3%

So annual interest=p×r×t/100

=3500×2×2.3/100

=7000×2.3/100

=16100/100

=161.

So annual interest is $161