Charis invested $140

Question

. She 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 Charis received at the end of two years?
A
$4.20
B
$6.00
C
$8.40
D
$12.60

Answer 1

To calculate the simple interest earned by Charis over two years, you can use the formula for simple interest:

$$\text{Interest}=P\times r\times t$$

where:

• $P$ is the principal amount (initial investment),
• $r$ is the annual interest rate (as a decimal),
• $t$ is the time in years.

Given:

• $P=140$ dollars,
• $r=3$,
• $t=2$ years.

Now plug in the values:

$$\text{Interest}=140\times 0.03\times 2$$

Calculating this step-by-step:

1. Calculate $0.03\times 2=0.06$.
2. Then multiply $140\times 0.06=8.40$.

So, the amount of interest Charis received at the end of two years is:

$$\text{Interest}=8.40\text{ dollars}$$

The correct answer is:

C) $8.40