Question

Find the amount of interest for an 18-year investment of $5200 at a simple annual rate of 4.21%.

a) $7,361.20
b) $10,983.60
c) $11,011.60
d) $14,722.40

Answer 1

The amount of interest for an 18-year investment of $5200 at a simple annual rate of 4.21% is $3,699.60.

Step-by-step explanation:

To calculate the amount of interest for an 18-year investment of $5200 at a simple annual rate of 4.21%, you can use the formula: Interest = Principal x Rate x Time. In this case, the principal is $5200, the rate is 4.21% (or 0.0421 as a decimal), and the time is 18 years. So, the interest = $5200 x 0.0421 x 18 = $3,699.60. Therefore, the correct answer is b) $10,983.60.