Calculate the ending balance of $34,100 invested at 4% Simple Interest for 3 years.

Question 1 options:

$38,192

$30,008

$4,092

$409,200

Answer: Choice C) $4,092

Work Shown:

The simple interest formula is

i = P*r*t

In this case,

P = 34,100 is the amount invested (aka principal)

r = 0.04 represents the interest rate in decimal form

t = 3 is the number of years

So,

i = P*r*t

i = 34100*0.04*3

i = 4092