You deposited $350 in the bank with simple interest several years ago. You are keeping track of your account balance by drawing a graph. The points (3,21)

Question

(
3
,
21
)
and (8,56)
(
8
,
56
)
are on the graph. What is the amount of interest you earn each year?(1 point)
Responses

$77.00
$77.00

$7.00
$7.00

$2.67
$2.67

$35.00

Answer 1

To determine the amount of interest you earn each year with the information provided, we can use the two points on the graph: (3, 21) and (8, 56).

The points represent:

• At year 3, the total amount (principal + interest) is $21.
• At year 8, the total amount (principal + interest) is $56.

First, we can calculate the interest earned over the 5-year period between those two points:

\[ \text{Interest between years 3 and 8} = \text{Total at year 8} - \text{Total at year 3} = 56 - 21 = 35 \]

Next, we can calculate the number of years between points 3 and 8:

\[ \text{Years} = 8 - 3 = 5 \]

Now we can find the annual interest by dividing the total interest earned by the number of years:

\[ \text{Annual Interest} = \frac{35}{5} = 7 \]

Therefore, the amount of interest you earn each year is $7.00.

So the correct response is:

$7.00