Arithmetic Reasoning Question

One of the topics I review in my ASVAB prep course is interest rate.  Interest rate is one of the topics that can appear on the Arithmetic Reasoning section of the ASVAB.  As an ASVAB tutor, I remind my students of the importance of being able to solve interest rate problems.  In doing so, it is important to be able to solve for interest, rate, time, or principal.

Today I present a question on Arithmetic Reasoning.

The topic is interest rate.

The question is:

Jenny put $600 in the bank for 5 years and earned 3% interest.

How much interest did she earn?

  1. $15.00
  2. $18.00
  3. $30.00
  4. $90.00

To solve the interest rate problem, it is essential to know the formula for interest rate.

Do you know the formula for interest rate?  Make sure you review the formula for interest rate. I will post the formula tomorrow.

I will show the answer and explanation to this problem.