Beth deposited $4,000 in a college fund earning 3.5% simple interest.

Question

What was the total interest earned at the end of 12 years?

Question 4 options:

$1,166.67

$1,680.00

$11,666.67

$16,800.00

Answer 1

To find the total interest earned at the end of 12 years, we need to calculate the simple interest.

The formula for simple interest is: Interest = Principal x Rate x Time.

In this case, the principal is $4,000, the rate is 3.5% (or 0.035), and the time is 12 years.

Using the formula:
Interest = $4,000 x 0.035 x 12 = $1,680.

Therefore, the total interest earned at the end of 12 years is $1,680.

So, the correct answer is: $1,680.00.