If simple interest is calculated using the formula A=P(1+nr) where A is total principle and interest, P is principle, n is number of years, and r is rate, what would be the simple interest earned on an investment of $2000.00 at 12.5% for 9 years?
A)$4,250.00
B)$2,250.00
C)$1,250.00
D)$250.00

Question

Quizplus · Accepted Answer

The simple interest can be calculated using the formula for total amount A = P(1 + nr), where P = $2000, n = 9 years, and r = 12.5% or 0.125. Plugging these values in, A = $2000(1 + 9*0.125) = $2000(1 + 1.125) = $2000 * 2.125 = $4250. The interest earned is the total amount minus the principal, so interest = $4250 - $2000 = $2250.

If Simple Interest Is Calculated Using the Formula A=P(1+nr) Where