Question

11. What is the interest earned when $1,500 is invested at a rate of 2.5% for 3 years?
A. $1,612.50
B. $112.50
C. $11,250
D. $1,387.50
12. What is the interest earned when $7,000 is invested for 6 months at a rate of 4.25% ?
A. $148.75
B. $7,148.75
C. $1,785.00
D. $178,500.00
13. What is the BALANCE of an account after 24 months when $3,700 is invested at 5% ?
A. $370.00
B. $4,440.00
C. $4,070.00
D. $444,000.00

Answer 1

11. multiply 1500 by 2.5% to see how much your cash went up for 1 year
1500(1.025) = 1537.5
to find interest subrtract that number by 1500 so see how much it increase
1537.5-1500 =37.5
then multiply by 3 to get it for 3 yrs
37.5(3) = 112.5 <- thats your interest

12. same thing but 6 months
7000(1.0425) = 7297.5
7297.5 - 7000 = 297.5 <- interest for 1 year
297.5(6/12) = 148.75 <- interest for 6 months

13. same thing but its 2 years
3700(1.05) = 3885
3885 - 3700 = 185 <- interest for 1 year
185(2) = 370 <- interst for 2 years
3700 + 370 = 4070 <- balance after 2 years

Answer 2

thank you