The simple interest (I) on a certain amount of money (p) that is invested at a specified interest rate (r) for a specific period of time (t) can be found by the formula I = prt. Find the interest on a principal of $100 invested at 3% yearly for 7 years.
A) $21.00
B) $2100
C) $18.90
D) $1890.00

Question

Quizplus · Accepted Answer

The simple interest is calculated using the formula I = prt. Here, p = $100, r = 3% = 0.03, and t = 7 years. So, I = 100 * 0.03 * 7 = $21.00.

The Simple Interest (I) on a Certain Amount of Money