Question

Charis invested $140. 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.$8.40

B.$6.00

C.$12.60

D.$4.20

Answer 1

Here, principal(P)= $140

Rate(R)=3%

Time(T)=2 years

So,

Simple interest (I)= (P*T*R)/100

= (140*3*2)/100

= $8.40

Hence, the amount of interest is $8.40.

Answer 2

$140 \times .03 = x \times 2$