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If $2,000 in a savings account earned the equivalent of 8 1/2 percent

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tagheueraquaracer
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If $2,000 in a savings account earned the equivalent of 8 1/2 percent [#permalink] New post   28 Oct 2020, 22:11
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If $2,000 in a savings account earned the equivalent of 8 1/2 percent simple annual interest, how much interest did the amount earn in 1 year?

A. $160
B. $170
C. $180
D. $240
E. $260
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B
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chetan2u
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Re: If $2,000 in a savings account earned the equivalent of 8 1/2 percent [#permalink] New post   28 Oct 2020, 22:36
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tagheueraquaracer wrote:
Hi, i've tried to find the solution for this problem, but can't find any in this website. So i'm posting one.

If $2,000 in a savings account earned the equivalent of 8 1/2 percent simple annual interest, how much interest did the amount earn in 1 year?
A. $160
B. $170
C. $180
D. $240
E. $260



The question requires the straight forward use of SI formula..
\(SI =\frac{ PRT}{100}=\frac{2000*\frac{17}{2}*1}{100}=10*17=170\)

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Re: If $2,000 in a savings account earned the equivalent of 8 1/2 percent [#permalink] New post   29 Oct 2020, 02:03
Interest=2000*8.5/100=20*8.5=170 B)
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Re: If $2,000 in a savings account earned the equivalent of 8 1/2 percent [#permalink] New post   29 Oct 2020, 02:09
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Principal: $2,000

Rate: 8 \(\frac{1}{2}\)% = \(\frac{17}{2}\)%

Time: 1 year

Interest: \(\frac{(P * R * T)}{100}\)

=> I = \(\frac{(2000 * 17 * 1)}{ (100 * 2)}\) = 170

Answer B
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Re: If $2,000 in a savings account earned the equivalent of 8 1/2 percent [#permalink] New post   29 Oct 2020, 10:38
tagheueraquaracer wrote:
If $2,000 in a savings account earned the equivalent of 8 1/2 percent simple annual interest, how much interest did the amount earn in 1 year?

A. $160
B. $170
C. $180
D. $240
E. $260

\(\frac{2000*8.5}{100}\) = 170 , Answer must be (B)
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YASH750
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Re: If $2,000 in a savings account earned the equivalent of 8 1/2 percent [#permalink] New post   29 Oct 2020, 10:56
Interest = Amount*Rate-of-interest
= 2000*(8.5/100)
=$170
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Re: If $2,000 in a savings account earned the equivalent of 8 1/2 percent [#permalink] New post   05 Nov 2020, 13:10
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tagheueraquaracer wrote:
If $2,000 in a savings account earned the equivalent of 8 1/2 percent simple annual interest, how much interest did the amount earn in 1 year?

A. $160
B. $170
C. $180
D. $240
E. $260

Solution:

We use the formula for simple interest: I = P x r x t, where I is the amount of interest earned, P is the principal ($2,000), r is the interest rate expressed as a decimal (0.085), and t is the time in years (1). Thus we have:

I = P x r x t

I = 2000 x 0.085 x 1

I = 170

Answer: B
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Re: If $2,000 in a savings account earned the equivalent of 8 1/2 percent [#permalink]
05 Nov 2020, 13:10
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