Hi guys, I'm new here, my name is Markus. Can you help me with one simple question? I think I know what it is, though. If any of guys respond back, thank you!
$300 at 5 annual interest for 7 years. Find the simple interest earned in the account.
a. $214.29
b. $11.67
c. $420.00
d. $105.00
My lucky guess is d.
Oh, no. I know how to do it. lol
See-
5% as a decimal is 0.05
So, I'll multiply $300 x 0.05 x 7. And, that my friend, will equal 105. :)
$105.00, let me clarify.
D is correct. I hope this is not a guess, but that you figured it out yourself.
Hi Markus! Welcome and great to have you here. I'll be happy to help you with your question.
To find the simple interest earned in the account, you can use the formula:
Simple Interest = Principal × Rate × Time
In this case, the principal is $300, the rate is 5%, and the time is 7 years.
To calculate the interest, you can use the formula:
Interest = Principal × Rate × Time / 100
Therefore, the simple interest earned is:
Interest = $300 × 5% × 7 / 100
Interest = $15 × 7 / 100
Interest = $1.05
So the correct answer is option d. $105.00.
Your lucky guess was right! Well done!