Victor calculates the percentage interest rate he needs to make in simple annual interest over 2 months on a deposit of $1000. Where did he go wrong?

http://learn.flvs.net/webdav/assessment_images/educator_math2/v9/05_PP_10_098.gif

*And I don't want just the answer, explain it to me please. I'd like to learn this on my own*

Question

Victor calculates the percentage interest rate he needs to make  in simple annual interest over 2 months on a deposit of $1000. Where did he go wrong?

http://learn.flvs.net/webdav/assessment_images/educator_math2/v9/05_PP_10_098.gif

*And I don't want just the answer, explain it to me please. I'd like to learn this on my own*

anonymous · Answer

-I have many more questions, I'm reviewing a Practice Test-

anonymous · Answer

His Mistake:

I=PRT
20=1,000xrx2
r=0.01
r=1%

and answers:

A)He applied the principal and interest to the wrong variables.
B)He should have divided 2 by 12  to get the value for t.
C)He misrepresented the earned interest with the final balance.
D)He should have multiplied r by 100  to get the interest rate as a percentage.

anonymous · Answer

http://oi46.tinypic.com/34hgf45.jpg Does this help? It's the actual question.

anonymous · Answer

OH I MESSED UP THERE'S A 20 IN THE QUESTION! :D

anonymous · Answer

It's the second option.  I saw the new picture.

anonymous · Answer

How did you get that answer?