Question

If the balance at the end of eight years on an investment of $196 that has been invested at a rate of 9% is $337.12, how much was the interest?

A) $141.12
B) $196.00
C) $141.00
D) $33.12

Answer 1

The interest earned on an investment of $196 at a 9% rate over eight years, with a final balance of $337.12, is calculated by subtracting the original investment from the final balance, which is $141.12.

Therefore, the correct answer is A) $141.12.

Step-by-step explanation:

The student is asking about calculating the interest earned on an investment over a period of time at a given interest rate which is a compound interest problem in mathematics. Given that the initial investment is $196 and the balance at the end of eight years is $337.12, we need to find the amount of interest earned.

To calculate the interest, subtract the original investment from the final balance:

Interest = Final Balance - Original Investment

Interest = $337.12 - $196.00

Interest = $141.12