Answer:
C. $160.
Step-by-step explanation:
We are asked to find the amount of simple interest earned from a deposit of $100 at 8% for 20 years.
We will use simple interest formula to solve our given problem
\(I=Prt\), where,
\(I=\text{Amount of interest}\),
\(P=\text{Principal amount}\),
\(r=\text{Interest rate in decimal form}\),
\(T=\text{Time in years}\).
Let us convert our given interest rate in decimal form.
\(8\%=\frac{8}{100}=0.08\)
Upon substituting our given values in above formula we will get,
\(I=100*0.08*20\)
\(I=160\)
Therefore, the amount of interest earned is $160 and option C is the correct choice.
