Question

Mary invested $15,000 in an account that paid 5% simple interest annually. She will not

make any additional deposits or withdrawals. How much interest will Mary earn on her
investment at the end of 3 years?
$2,250.00
F
$17,364.38
H
$50,625.00
J
$225,000.00

Answer 1

$2,250

Explanation:

5% of 15,000 is 750. If we multiply 750 by the number of terms, 3, we get an answer of $2,250.

Answer 2

$2,250

Explanation:

Use the simple interest formula i = prt. Here the principal, p, is $15,000 and the interest rate, r, is 0.05. Then:

i = ($15,000)(0.05)(3) = $2,250