For Simple Interest Accounts the Interest Earned or Due Depends

question 84

Multiple Choice

For simple interest accounts the interest earned or due depends on the principal p, interest rate r, and the time t in years according to the formula I = prt. Find p given I = $50.14, r = 10.5%, and t = 6 months. Round your answer to the nearest dollar.

• A) $955
• B) $960
• C) $965
• D) $970

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Definitions:

Precautionary Motive

A rationale for holding money or liquid assets to guard against future uncertainties and potential emergencies.