Question

Peter is calculating the interest earned on a

deposit of $275 in an account that earns 8%
simple interest after 12 years.

Answer 1

a) He substituted 0.8 instead of 0.08.

b) $264

Explanation:

• The full question is: a. What did Peter do incorrectly? b. What is the correct amount of interest?

• Using the equation
  `I=prt`, we can substitute the given values.
• I = 275 x 0.08 x 12
• I = 264