Question

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


Please select the best answer from the choices provided

A
B
C
D

Answer 1

C

Compute simple interest I = P * r * t:
- a: 2400(0.05)(3) = $360
- b: 1950(0.04)(4) = $312
- c: 1600(0.03)(8) = $384
- d: 1740(0.08)(2) = $278.40

Greatest is c ($384).