If the value of the principal today is $2000 and the interest rate is 12.33%,what is the total simple interest income at the end of three years?
A)$2,739.80
B)$739.80
C)$2,657.30
D)$787.21
E)None of the above.

Question

Quizplus · Accepted Answer

Simple interest is calculated using the formula $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. Here, $P = $2000$, $r = 12.33\% = 0.1233$, and $t = 3$ years. So, $I = $2000 \times 0.1233 \times 3 = $739.80$.

If the Value of the Principal Today Is $2000 and the Interest