🎓 GED Exam Prep

A principal amount of $2,500 is invested at an annual simple interest rate of 4% for 3 years. What is the total interest earned?

A $100
B $300
C $2,800
D $2,600

✓ Correct Answer: Option B

Simple interest is calculated using the formula I = PRT, where P is the principal, R is the rate, and T is time. So, I = $2,500 × 0.04 × 3 = $300.

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