To solve this problem, we start by using the formula for simple interest:
[tex]\[ \text{Simple Interest} = P \times r \times t \][/tex]
where:
- [tex]\(P\)[/tex] is the principal amount,
- [tex]\(r\)[/tex] is the rate of interest per year,
- [tex]\(t\)[/tex] is the time the money is invested or borrowed for in years.
Given:
- [tex]\(P = \$ 350\)[/tex]
- [tex]\(r = 3\% = 0.03\)[/tex] (in decimal form)
- [tex]\(t = 1 \text{ year}\)[/tex]
Now substitute these values into the formula:
[tex]\[ \text{Simple Interest} = 350 \times 0.03 \times 1 \][/tex]
Calculating this step-by-step:
1. Multiply the principal amount by the rate:
[tex]\[ 350 \times 0.03 = 10.5 \][/tex]
2. Since the time is 1 year, multiplying by 1 does not change the value.
Therefore, the simple interest earned in one year is:
[tex]\[ 10.5 \][/tex]
Thus, the correct answer is:
A. \$10.50
