$3,000 is invested for 15 months at an annual simple interest rate of 12%. How much interest will be earned? Round your answer to the nearest dollar.
A) $4,503
B) $5,400
C) $450
D) $397
E) $543

Question

$3,000 is invested for 15 months at an annual simple interest rate of 12%. How much interest will be earned? Round your answer to the nearest dollar. ​
A) $4,503
B) $5,400
C) $450
D) $397
E) $543

Quizplus · Accepted Answer

To calculate the simple interest, we use the formula I = PRT, where I stands for the interest, P for the principal amount, R for the annual interest rate, and T for the time period in years. In this case, we have:

I = 3000 x 0.12 x (15/12)
I = 450

Therefore, the amount of interest earned is $450. Option C is the correct answer.

$3,000 Is Invested for 15 Months at an Annual Simple