Jasmin deposits $3,000 into a savings account with an 5%, simple interest rate. What is the amount of interest earned in 2 years?
A - $15
B - $150
C - $300
D - $3,300
2. Jacob is buying a used car for $2575. His bank will loan him the money for a simple interest rate of 7.25% for 36 months. Calculate the total amount of money Jacob will repay the bank at the end of the loan.
A - $560.06
B - $3135.06
C - $5600.63
D - $6720.75
For the first question, the formula for simple interest is I = P * r * t, where I is the interest earned, P is the principal (the initial amount deposited), r is the interest rate, and t is the time in years. Plugging in the values given, we get:
I = 3000 * 0.05 * 2
I = 300
So the amount of interest earned in 2 years is $300. Therefore, the answer is C.
For the second question, the formula for calculating the total amount repaid on a simple interest loan is:
Total amount = Principal + (Principal * rate * time)
Plugging in the values given, we get:
Total amount = 2575 + (2575 * 0.0725 * 3)
Total amount = 3135.06
So Jacob will repay a total of $3135.06 at the end of the loan. Therefore, the answer is B.