You invest $2,000.00 at a rate of 4% APR for a 3 months. How much interest did you earn?

A. $80.00

B. $40.00

C. $20.00

D. $10.00

You earn $10.00/hour and work 40 hours/week. You invest $4,000.00 at an interest rate of 5% APR for a year. How much interest did that savings earn in a year in terms of hours of work?

A. 100 hours

B. 20 hours

C. 40 hours

D. 400 hours

Question

Jasmine

Mathematics

13 November, 15:07

You invest $2,000.00 at a rate of 4% APR for a 3 months. How much interest did you earn?

A. $80.00

B. $40.00

C. $20.00

D. $10.00

You earn $10.00/hour and work 40 hours/week. You invest $4,000.00 at an interest rate of 5% APR for a year. How much interest did that savings earn in a year in terms of hours of work?

A. 100 hours

B. 20 hours

C. 40 hours

D. 400 hours

+1

Answers (1)

Know the Answer?

Alissa Murphy · Answer 1

1) If you invest $2,000.00 at a rate of 4% APR for 3 months and the interest is compounded monthly then in 3 months. It will be worth $2,020.07.

So subtracting $2,000 from $ 2,020.07

we get.

$20.07

2) I = Prt

I = 4,000 * 0.05

I = $200

200 / 10 = 20 hours of work