Answer:
B
Step-by-step explanation:
This is a simple interest problem. The formula for simple interest is:
[tex]i=Prt[/tex]
Where
i is the interest amount
P is the principal amount
r is the rate of interest
t is the time in years
Given P, r, and t, we need to find convert r (as a percentage) to a decimal. We simply divide by 100. Shown below:
r = 7% = 7/100 = 0.07
Now, we substitute into formula and find i (interest):
[tex]i=Prt\\i=(300)(0.07)(2)\\i=42[/tex]
Correct answer is B, $42
