Question

When Loffa was born, her parents put $8000 into a college fund account that earned 9% simple interest. Find the amount of interest earned after 18 years.

A) $12,240
B) $13,600
C) $1,440
D) $7,200

Answer 1

To calculate the simple interest earned on a college fund account that had a principal of $8000 at a rate of 9% over 18 years, the formula I = P * r * t is used. The correct amount of interest earned is $12,960, which does not match any of the provided choices.

Step-by-step explanation:

The subject of this question is calculating simple interest, which falls under the category of Mathematics. For Loffa's college fund account, which earned 9% simple interest, the amount of interest earned after 18 years can be calculated using the formula for simple interest: I = P * r * t, where I is the interest, P is the principal amount ($8000), r is the rate of interest (9% or 0.09), and t is the time in years (18).

Plugging in the numbers:

I = $8000 * 0.09 * 18 = $12,960

Thus, the amount of interest earned after 18 years is $12,960.

It seems there has been a small error, as none of the provided options match the calculated result. Given the options A) $12,240, B) $13,600, C) $1,440, and D) $7,200, the closest option is A) $12,240, although this is not the correct answer based on our calculations.