Question

If the principal is $350 and the interest rate is 3 percent, what is the simple interest earned in one year? simple interest = P × r × t Select one of the options below as your answer: A. $10.50 B. $30.25 C. $105

Answer 1

the interest rate earned in one year is $10.5

Answer 2

The option A. $10.50 is correct

Explanation:

Principal = $350

Rate = 3%

⇒ Rate = 0.03

Time = 1 year

Now, Simple Interest is given by the formula : Principal × Rate × Time

Therefore, Simple Interest = 350 × 0.03 × 1

⇒ Simple Interest = $10.50

Hence, The option A. $10.50 is correct