Sonny deposited $8,500 in an account that earns 4% simple interest. If Sonny makes no more deposits or withdrawals, then how much interest will he earn at the end of 2 years?

answer choices

a $68,00.00

b $68,000.00

c $680.00

d $9,180.00

Answer: $680.00

Step-by-step explanation:

Principal = 8500

Rate = 4%

Time = 2 years

Interest = (Principal*Rate*Time) / 100

= (8500*4*2) / 100

= 68000/100

= $680

The interest is $680

C

Step-by-step explanation:

In this question, we are tasked with calculating the simple interest on an amount of money that was saved for two years.

Mathematically, simple interest can be calculated using the formula;

I = PRT/100

Where I is the amount of interest earned which we are trying to calculate

P is the principal which is the amount saved originally which is $8,500

R is the rate which is 4%

T is the time taken which is 2 years

Plugging these values, we have;

I = (8500 * 4 * 2) / 100 = 68000/100 = $680