Question

I = prt Time = 3 years Interest Rate = 5% Principal = $7,430 Use the information to answer the question. How much interest is paid? $111.45 $1,114.50 $11,145 $111,450

Answer 1

I = prt

p = 7430
r = 5%....turn to decimal = 0.05
t = 3

I = (7430)(0.05)(3)
I = 1114.50 <===

Answer 2

Answer: Second option is correct.

Step-by-step explanation:

Since we have given that

Principal = $7,430

Rate of interest = 5%

Time = 3 years

We need to find the interest paid using "simple Interest" method.

As we know the formula:

$I=\dfrac{p\times r\times t}{100}\\\\I=\dfrac{7430\times 5\times 3}{100}\\\\I=\ 1114.5$

Hence, Second option is correct.