Susan has $800 in a savings account that earns 6% simple interest annually. How much interest will she earn in 5 years?
Responses
A $240.00
B $48.00
C $480.00
D $30.00
The formula for simple interest is I=Prt, where I is the interest earned, P is the principal amount, r is the annual interest rate (as a decimal), and t is the time in years.
In this case, P = $800, r = 0.06, and t = 5. Plugging these values into the formula, we get:
I = 800 x 0.06 x 5
I = $240
Therefore, Susan will earn $240 in interest over 5 years.
The answer is A) $240.00.