Simple interest

Simple interest

Use the simple interest equation to solve.

Multiple Choice

How much interest did he earn in one year?

• $ 16.90

• $ 101.40

• $ 7,800

• $

Lawrence invested $3000 and earned 6.5% interest per year. He left the money in the investment for two years. At the end of the first year the interest earned was added to the principal for the second year. What was the value of his investment after year 2? (Round to the nearest hundreth if necessary)