Question

Derrick has $3500 in a savings account that earns 12% annually. If the interest is not compounded, how much interest will he earn in 3 years?
A) $36.00
B) $420.00
C) $1260.00
D) $2520.00

Answer 1

$\bf ~~~~~~ \textit{Simple Interest Earned}\\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\to& \ 3500\\ r=rate\to 12\%\to \frac{12}{100}\to &0.12\\ t=years\to &3 \end{cases} \\\\\\ I=3500\cdot 0.12\cdot 3$

Answer 2

The answer is c. (3500*12%)*3=1260. I hope I helped.