Answer:
B. $840
Step-by-step explanation:
Given that
Rate of simple interest = 3.5%
Principal amount = $12,000
Time = 2 year
To find:
Interest earned = ?
Solution:
Formula for Simple Interest is given as:
[tex]S.I. = \dfrac{PRT}{100}[/tex]
Where P is the principal amount
R is the annual Rate of interest
T is the time for which principal was invested.
Here, we are given that:
P = $12,000
R = 3.5%
T = 2 years
Putting all the values in the formula:
[tex]SI= \dfrac{12000\times 3.5 \times 2}{100}\\\Rightarrow SI= 12\times 35 \times 2\\\Rightarrow SI = \$840[/tex]
So, answer is:
B. $840
