Final answer:
To determine which scenarios earn the same amount of interest, the interest for a $600 principal at 2.5% for 6 years is calculated to be $90. Each scenario's interest is calculated, and it is found that only option E ($225 at 10% for 4 years) earns the same amount of interest as the original scenario.
Step-by-step explanation:
The question asks us to compare different interest-earning scenarios to find which ones would earn the same amount of interest as a $600 principal with 2.5% interest for 6 years. To solve this, we use the formula for simple interest: Interest = Principal × rate × time. Let's calculate the interest earned in the given situation:
For the $600 principal at 2.5% for 6 years:
Interest = $600 × 0.025 × 6 = $90
Now let's evaluate each option:
- A. $200 at 5% for 8 years: Interest = $200 × 0.05 × 8 = $80 (Not the same)
- B. $80 at 7.5% for 18 months (1.5 years): Interest = $80 × 0.075 × 1.5 = $9 (Not the same)
- C. $250 at 10% for 2 years: Interest = $250 × 0.10 × 2 = $50 (Not the same)
- D. $300 at 2% for 2 years: Interest = $300 × 0.02 × 2 = $12 (Not the same)
- E. $225 at 10% for 4 years: Interest = $225 × 0.10 × 4 = $90 (The same)
Therefore, the scenario that earns the same amount of interest as the original $600 principal at 2.5% for 6 years is option E: $225 at 10% for 4 years.