Asked by Arely Villalobos on May 11, 2024
Verified
A principal of $2,680 is invested for 2.5 years at a rate of 12%. What amount of interest will be earned?
A) $321.60
B) $3,001.60
C) $3,484.00
D) $290.33
E) $804.00
Principal
The original sum of money borrowed in a loan or the amount of the investment.
Rate
The percentage at which interest is charged on a loan or earned on an investment.
- Calculate simple interest and main concepts.
Verified Answer
BM
Bettina MateoMay 11, 2024
Final Answer :
E
Explanation :
The interest earned can be calculated using the formula for simple interest: I = PRT, where I is the interest, P is the principal, R is the rate (as a decimal), and T is the time in years. Substituting the given values: I = $2,680 * 0.12 * 2.5 = $804.00.
Learning Objectives
- Calculate simple interest and main concepts.