determine the simple interest on an account paying 6.5% annually interest of an investment of $5,250. a…

determine the simple interest on an account paying 6.5% annually interest of an investment of $5,250. a. $341.25 c. $345.02 b. $343.08 d. $347.96 please select the best answer from the choices provided

determine the simple interest on an account paying 6.5% annually interest of an investment of $5,250. a. $341.25 c. $345.02 b. $343.08 d. $347.96 please select the best answer from the choices provided

Answer

Explanation:

Step1: Identify the simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Here, assume $t = 1$ year, $P=$5250$, and $r = 6.5%=0.065$.

Step2: Calculate the simple interest

$I=Prt=5250\times0.065\times1$. $I = 5250\times0.065=341.25$.

Answer:

A. $341.25$