10
QuizMultiple Choice

Simple Interest

Question 10 • POP Financial Math 26/27

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

Answer
A
$8,030, invested for 2 years at 2.0% interest
B
$1,901, invested for 8 years at 4.0% interest
C
$5,330, invested for 6 years at 2.0% interest
D
$3,970, invested for 6 years at 4.0% interest

Explanation

Using simple interest, calculate principal × rate × time for each investment. Choice A earns $8,030 × 0.02 × 2 = $321.20, which is less than the interest from B ($608.32), C ($639.60), and D ($952.80). So the $8,030 investment for 2 years at 2.0% earns the smallest amount of interest.

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