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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

Kaitlin Dean

in Mathematics

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Kristi Hammond on December 25, 2018

in the first place we're going to have the interest amount to :A. $2,400 - 3 years at 5.0% : first we need to count what is one percent of $2,400, and we do that by dividing by 100 , and that gives us $24, to have our interest in a year we will have to multiply $24 with 5.0 and that gives us $120 per year , so to calculate the final amount we will have to multiply $120 with the amount of years and that is 3, so that the final amount of interest that we're going to win in the $2,400 - 3 years at 5.0% is $360;B. $1,950 invested for 4 years at 4.0% , we repeat the same process, we can count on one percent of $1950 through its division with 100, and that gives us $19,5, then, we multiply the $19,5 with the interest rate that is 4.0 and that gives us $78 per year,then we multiply that amount by 4 (number of years) , and in 4 years we're going to win $312 C. $1,600 invested for 8 years at 3.0% interest : again we have one percent of $1600 which is $16, then multiply with the interest, which is the 3.0, and that gives us earnings of $48 per year,then multiply that amount by 8 (number of years), so in 8 years we will earn $384 D. $1,740 invested for 2 years at 8.0% interest : again, we have the one percent of $1,740 and is $17,4, then we count how much we earn in 1 year , and we do that by multiplying by 17.4 with interest, which is 8.0, which gives us $139.2 per year, and during the 2 years that gives us the total revenue of $278.4 So the correct answer is C) $1,600 invested for 8 years at 3.0% interest , which will earn you us $384.


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