Compute the amount of interest earned in the following simple interest problem. a deposit of $800 at 3.5% for 7 years =
a $159.99
b $196.00
c $1,599.99
d $1,960.00

Option: b is the correct answer.

                 b.  $ 196.00

The principal amount is given by: P=$ 800

The rate of interest is given by: R=3.5%

The time period is given  by: T=7 years.

We know that the simple interest(S.I.) on a principal amount P at some rate of interest R and for a time period T is calculated by the formula:

Hence, we get:

The amount of interest earned in the following simple interest problem is:

                            b.  $ 196.00