Question

Compute the amount of interest earned in the following simple interest problem. A deposit of $100 at 8% for 20 years=

$1.60
$16.00
$160.00
$1600.00

Answer 1

use the formula
i = prt
p = principle amount = 100
r = rate of interest = 8% = 0.08
t = time in years = 20

i = 100*0.08*20 = 8*20 = 160

so the interest earned is $160