WILL FAN AND MEDAL

Beth deposited $4000 in a college fund earning 3.5% interest.

What was the total interest earned at the end of 12 years?

A.
$1,166.67

B.
$1,680.00

C.
$11,666.67

D.
$16,800.00

Question

WILL FAN AND MEDAL

Beth deposited $4000 in a college fund earning 3.5% interest. 

What was the total interest earned at the end of 12 years?
  
 
 

 
 

  

  A. 
  $1,166.67   
   

 
 

  

  B. 
  $1,680.00   
   

 
 

  

  C. 
  $11,666.67   
   

 
 

  

  D. 
  $16,800.00

anonymous · Answer

Assume compounded yearly

A = P(1+0.035)^12  is amount after 12 years
A = 4000(1.035)^12 = 4000(1.511) = 6044.27

but 4000 of this is Principal,
so Interest is
I = A-P = 2044.27

Since this does not fit your options, assume simple interest of 0.035 x 12 years 
I = (0.035)(12)(4000) = 1680   thus
B