You invest $2,000.00 at a rate of 4% APR for a 3 months. How much interest did you earn?
$80.00
$40.00
$20.00
$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?
100 hours
20 hours
40 hours
400 hours

Question

You invest $2,000.00 at a rate of 4% APR for a 3 months. How much interest did you earn? 
    $80.00
    $40.00
    $20.00
    $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?
    100 hours
    20 hours
    40 hours
    400 hours

anonymous · Answer

3 months = 1/4 year
rate is 4 
principle is 2000
interest = PRT/100

anonymous · Answer

^^ Huh?

anonymous · Answer

what huh ? lol

anonymous · Answer

Can u help, explain further. I like explanations.

anonymous · Answer

time is 3 month.. so it will be 1/4 years right ?

anonymous · Answer

Well, yes. I got that.

anonymous · Answer

number one: (4/100)(3/12)(2000.00)
number two: (4000.00)(5/100) divide this by 10 for answer in hours

anonymous · Answer

simple interest = principal*time*rate/100
= 2000*4*(1/4)/100
= $20

anonymous · Answer

Ohhh okay, I understand that now. So what about number two?

anonymous · Answer

ok