$300 at 5% interest for 7 years. Find the simple interest earned in the account.
A. $214.29
B. $11.67
C. $420.00
D. $105.00
Can you please help? Thanks!
principal * interest rate * years
I = PRT
300 * 0.05 * 7 = $__________
Sure! To find the simple interest earned in the account, we can use the formula:
Simple Interest = (Principal amount) × (Interest rate) × (Time period)
In this case, the principal amount is $300, the interest rate is 5% (which can also be written as 0.05), and the time period is 7 years.
Plugging these values into the formula:
Simple Interest = $300 × 0.05 × 7
Simple Interest = $105
Therefore, the simple interest earned in the account is $105.
Among the given options, the correct answer is D. $105.00.