Question

Suppose you deposited ​$40 per month into a savings plan for 9 years and at the end of that period your balance was ​$19,600.What was the amount you earned in​ interest?

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A. It is impossible to compute without knowing the APR. To find the correct​ answer, multiply each ​$40 deposit by the​ APR, and then multiply the product by the number of months in 9 years.
B. It was ​$15,280. Calculate the amount deposited over 9 years and then subtract it from the balance of ​$19,600.
C. It is impossible to compute without knowing the APR. To find the correct​ answer, divide the number of payments by the APR.
D. It was ​$15,280. Divide the balance of ​$19,600 by the number of years,9.
E. It was $30,560. Multiply the balance of ​$19,600 by the number of years,9.
F. it was $30,560.Calculate the amount deposited over 9 years and then add it to the balance of ​$19,600.

Answer 1

b. It was ​$15,280. Calculate the amount deposited over 9 years and then subtract it from the balance of ​$19,600.

Explanation:

19,600-4,320 gives you the interest

Answer 2

B. It was ​$15,280.

Explanation:

Calculate the total amount deposited:

$40 per month * 12 months per year * 9 years = $4,320

Subtract the total amount deposited from the final balance: $19,600 - $4,320 = $15,280

The result is the interest earned: $15,280.

So, the answer is B. It was $15,280.