Arithmetic ReasoningPregunta 8 de 120

You deposit $500 in an account earning 4% simple interest per year. How much interest is earned in 3 years?

a.$20
b.$40
c.$80
d.$60

Explicación

Simple interest equals principal times rate times time. That is $500 times 0.04 times 3, which equals $60. Simple interest is calculated only on the original principal.

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