Question

suppose you deposited $100 in a savings account 2 years ago. the simple interest rate is 3.2%. the interest that you earned in those 2 years is $6.40. which of the following is/are true?
r = 3.2%
t = 100
i = 6.40
p = 2

Explanation:

Step1: Recall Simple Interest Formula

The simple interest formula is \( I = prt \), where \( I \) is interest, \( p \) is principal, \( r \) is rate, \( t \) is time (in years).

Step2: Identify Variables from Problem

• Principal (\( p \)): Amount deposited, so \( p = 100 \) (not \( t = 100 \), \( t \) is time).
• Rate (\( r \)): Given as \( 3.2\% = 0.032 \), so \( r = 3.2\% \) is true.
• Time (\( t \)): 2 years, so \( t = 2 \) (not \( p = 2 \)).
• Interest (\( I \)): Earned interest is \( \$6.40 \), so \( I = 6.40 \) is true.

Answer:

\( r = 3.2\% \) and \( I = 6.40 \) are true. (If options were labeled, e.g., if \( r = 3.2\% \) is option A, \( I = 6.40 \) is option C, then A and C.)