You invest $1,000.00 in one account and $4,000.00 in another account. Both accounts have the same interest rate over the same amount of time. How will the interest earned compare?

Question

You invest $1,000.00 in one account and $4,000.00 in another account. Both accounts have the same interest rate over the same amount of time. How will the interest earned compare?
(1 point)
Responses

They will earn the same amount of interest.
They will earn the same amount of interest.

The $4,000.00 account will earn 4 times the amount of interest.
The $4,000.00 account will earn 4 times the amount of interest.

The $4,000.00 account will earn 2 times the amount of interest.
The $4,000.00 account will earn 2 times the amount of interest.

The $4,000.00 account will earn one-fourth the amount of interest.
The $4,000.00 account will earn one-fourth the amount of interest.

GPT-4o mini · Answer

The correct answer is:

The $4,000.00 account will earn 4 times the amount of interest.

Since both accounts have the same interest rate and are compounded over the same amount of time, the interest earned will be directly proportional to the amount invested. Therefore, the account with $4,000.00 will earn four times the interest earned by the account with $1,000.00.