Question

Hannah earned $1536 in 8 years on an investment at a 4% annual simple interest rate. How much was Hannah’s investment?

$3072


$491.52


$768


$4800

Answer 1

Option B - $491.52

Explanation:

Given: Hannah earned $1536 in 8 years on an investment at a 4% annual simple interest rate.

To find : How much was Hannah’s investment

Solution : Investment = Principal × rate × time

Principal = $1536

Rate = 4% = 0.04

Time = 8 years

Investment = Principal × rate × time

Investment = 1536 × 0.04 × 8

Investment = 491.52

Therefore, Option B is correct - $491.52