Multiple choice

A man deposits 18,000 dollars in an account that pays 7% simple interest annually. How much money will be in his account after 3 years?

  1. 17,802 dollars

  2. 21,780 dollars

  3. 23,620 dollars

  4. 25,200 dollars

  5. 32,560 dollars
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B Correct answer
Explanation

Simple interest is calculated as I = P*r*t. Here, I = 18000 * 0.07 * 3 = 3780. The total amount is 18000 + 3780 = 21780.

AI explanation

Using the simple interest formula, Interest equals Principal multiplied by Rate multiplied by Time divided by 100. The interest is calculated as 18000 multiplied by 7 multiplied by 3 divided by 100, which equals 3780 dollars. Adding this interest to the principal gives the final amount of 18000 plus 3780, resulting in 21780 dollars.

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