9
QuizMultiple Choice

Simple Interest

Question 9 • MO-Mathematics 7

LaShea would like to invest her $100 in birthday money. Which option will give her the most money at the end of the investment period?

Answer
A
1 year at 8 percent
B
1.5 years at 7 percent
C
2 years at 6.5 percent
D
3 years at 4 percent

Explanation

Since each option starts with the same $100, compare the total growth over the investment period. Using simple interest, multiply the annual rate by the number of years: A earns 8%, B earns 10.5%, C earns 13%, and D earns 12%. Choice C, 2 years at 6.5 percent, gives the greatest return: $13 in interest, or $113 total.

AI-written and checked against the verified answer.

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