Which of the following investments will earn the greatest amount of interest?

Question

Which of the following investments will earn the greatest amount of interest?
a. $2,400 invested for 3 years at 5.0% interest
b. $1,950 invested for 4 years at 4.0% interest
c. $1,600 invested for 8 years at 3.0% interest
d. $1,740 invested for 2 years at 8.0% interest
Please select the best answer from the choices provided
O A
O B
O C
O D

SnapAndSolve AI · Accepted Answer

To find the greatest amount of interest, calculate the simple interest for each option using the formula: Interest = Principal × Rate × Time.

Option a: $2,400 × 0.05 × 3 = $360
Option b: $1,950 × 0.04 × 4 = $312
Option c: $1,600 × 0.03 × 8 = $384
Option d: $1,740 × 0.08 × 2 = $278.40

The greatest amount of interest is earned in Option c ($384).

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Which of the following investments will earn the greatest amount of interest?

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