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In the situation, simple interest is calculated yearly.

How much interest was earned?

Drag and drop the answer into the box.

Principal: $5500; Time: 8 years; Interest rate: 2.5%; Interest: ?

Answer choices:
A. $137.50 

B. $1,100

C. 5,500

D. 6,600

E. 44,000

In the situation simple interest is calculated yearly How much interest was earned Drag and drop the answer into the box Principal 5500 Time 8 years Interest ra class=

Respuesta :

Answer: $1,100 will be the interest.

Explanation: Since, we know that, Simple interest on annually rate for an initial amount P is, [tex]I=\frac{P\times r\times t}{100}[/tex]

Where,

r= rate of interest and t= number of years.

Here, P= $5,500 r= 2.5% and t=8 years.

Thus, simple interest = [tex]\frac{5500\times 2.5\times 8}{100}= 55\times 2.5\times 8=1100[/tex]

So, Simple interest is $1100.

Therefore, option B is correct.


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