35
QuizMultiple Choice

Simple Interest

Question 35 • (Kapuschinsky)WCA 3424 Consumer Applications 1st nine weeks 26-27

Which of the following investments will earn the greatest amount of interest?

Answer
A
$2,400 invested for 3 years at 5.0% interest
B
$1,950 invested for 4 years at 4.0% interest
C
$1,600 invested for 8 years at 3.0% interest
D
$1,740 invested for 2 years at 8.0% interest

Explanation

Use the simple interest formula, interest = principal × rate × time. The investments earn $360 for choice a, $312 for choice b, $384 for choice c, and $278.40 for choice d. Choice c, $1,600 invested for 8 years at 3.0%, earns the greatest amount: $384.

AI-written and checked against the verified answer.

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