Multiple choice

Liam deposits $10,000 into a fixed deposit account offering 6% annual simple interest. After 3 years, he withdraws half of the principal. How much interest will he have earned by then, and what is the total balance in his account after this withdrawal?

  1. Interest: \$1,200; Total balance after withdrawal: \$6,200
  2. Interest: \$1,500; Total balance after withdrawal: \$6,500
  3. Interest: \$1,800; Total balance after withdrawal: \$7,000
  4. Interest: \$1,800; Total balance after withdrawal: \$6,800
  5. Interest: \$1,900; Total balance after withdrawal: \$7,200
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D Correct answer

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