Hello there! The formula for finding simple interest is prt. That means multiply the principal (initial amount) by the rate (simple interest percentage) by the amount of time (could be in months or years). In this case, $9800 is the initial amount in the bank and the interest rate is 2% for 15 years. Let’s multiply the numbers. 9800 * 2% (0.02) is 196. That’s $196 a year in simple interest. But it asks for the amount in 15 years, so we multiply those two numbers. 196 * 15 is 2,940. There. $2,940 is earned in interest over 15 years. The answer is A: $2,940.
