Pat deposits $600 in a savings account at a simple interest rate 6% per year for 5 years. How much money will Pat have earned in interest at the end of 5 years?
A. $360
B. $180
C. $95
D. $36
In the simple interest, we utilize the following formula to find the simple interest after a period of time in years.
I=P*r*t
I is the interest
P=Principal or initial deposit
r=rate
t=time in years
From the given problem, P=$600, r=6%=6/100=0.06, t=5 years. Then
I=$600*0.06*5=$180
After 5 years, Pat will earn an interest of $180.
Therefore, the Correct Answer is B.
More Questions on TEAS 7 Math
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Q #1: The hypotenuse (side C) of a triangle is 13 inches long. Which of the following pairs of measurements could be the correct for the lengths of the other two sides of the triangle? (Note: A2 + B2= C2)
A. 5 inches, 12 inches
B. 2.5 inches, 6 inches
C. 2.5 inches, 4 inches
D. 5 inches, 8 inches
Answer Explanation
In this problem, we take the triangle as a right-angled triangle and label it as follows:
From the Pythagoras theorem A2 + B2= C2, we can look for a combination of A and B that when the squares of A and B are summed give a square of 13. Mathematically,
But C=13 inches
If we take A=5 inches and B=12 inches, then
Next, we take A=2.5 inches, B=6 inches
Next, we take A=2.5 inches, B=4 inches
6.25+16=169
22.25≠169
Taking A=5 inches and B=8 inches
From the above computation, the combination of A=5 inches and B=12 inches give a triangle with a hypothenuse of 13 inches.
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Q #2: A lab scale weighs 3 pounds, 5 ounces. Which of the following is the scale's weight in ounces(oz)?
A. 29 oz
B. 41 oz
C. 35 oz
D. 53 oz
Answer Explanation
We convert the given weight in pounds to ounces and find total weight. 1 pound=16 ounces, which we interpret as
Or
Use the second option to convert pounds to ounces
Now, we can ounces to ounces as: 48 oz + 5 oz= 53 oz
Therefore, 3 pounds, 5 ounces is equal to 53 oz
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Q #3: To determine the insurance of a car, an insurance company considers the following determinants: the age of the car, the model of the car, and the mileage of the car. Which of the following is the dependent variable?
A. Model
B. Insurance premium
C. Mileage
D. Age
Answer Explanation
A dependent variable is one that when another variable changes, it also changes. In our case, the insurance premium changes if the age, model, mileage of car changes. Thus, insurance premium is the dependent variable while the other three are independent variable.
