Question

You must include an explanation accompanied with your solution. Answers without

explanations will not receive full credit: *
2 points
Mark invested $125. He earned a simple interest of 3% per year on the initial
investment. If no money was added or removed from the investment, what was
the amount of interest Mark received at the end of two years?
A. $5.70
B. $7.50
C. $75.00
D. $750.00
Your answer

Answer 1

B) $7.50

Explanation:

Interest (I) = Principal (P) x Interest Rate (r) x Time (t, in years)

I = 125(.03)(2)

I = 7.5