Question

If I invest $600 at an 11.5% interest rate, how much money will I earn over 5 years? A. $945 B. $345 C. $69 D. $34.50

Answer 1

The correct answer is A.

Explanation:

So to figure out the investment in one year, we need to convert `11.5%` to a decimal by putting it over a 100 like this:

`11.5/100 = 0.115`

So now we multiply this by 600 like this:

`600*0.115=69`

Now we multiply 69 by 5 which gives us 345 but we need to add this to 600 of our current amount which gives us 945. So the answer is A.