9
QuizMultiple Choice

Simple Interest

Question 9 • (Kapuschinsky)WCA 3424 Consumer Applications 1st nine weeks 26-27

Arthur has $19,500 to invest, and wishes to gain $8,000 in interest over eleven years. Approximately what is the minimum simple interest rate that Arthur needs to achieve his goal?

Answer
A
2.64%
B
3.04%
C
3.72%
D
4.51%

Explanation

For simple interest, use I = Prt, so the rate is r = I ÷ (P × t). Substituting the values gives r = 8,000 ÷ (19,500 × 11) ≈ 0.0373, or about 3.73%. The closest choice is 3.72%.

AI-written and checked against the verified answer.

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