Question

Compute the amount of interest earned in the following simple interest problem. a deposit of $4,500 at 5% for 3 years: $6.75 $67.50 $675.00 $6,750.00

Answer 1

4,500×0.05×3
=675
The answer is c

Answer 2

option C - $675

Explanation:

Given : A deposit of $4,500 at 5% for 3 years

To find : Compute the amount of interest earned in the following simple interest problem.

Solution :

Using simple interest formula,

`S.I=P* R * T`

Where S.I is the simple interest

P is the principle P=4500

r is the rate r=5%=0.05

t is the time t= 3 years

Substitute the value,

`S.I=P* R* T`

`S.I=4500* 0.05* 3`

`S.I=675`

Therefore,Option C is correct.

The simple interest is $675