Question

How much interest would a person earn on an investment of $34,000 at 6% simple interest for 9 years? What would be the total amount at the end of that time?

A) $20,520 in interest; $54,520 total
B) $20,400 in interest; $54,400 total
C) $19,200 in interest; $53,200 total
D) $18,000 in interest; $52,000 total

Answer 1

The interest on an investment of $34,000 at a 6% simple interest rate for 9 years is calculated using the formula I = PRT. The total interest is $18,360, and the total amount after 9 years is $52,360. None of the answer options provided are correct, but the closest answer is $18,000 in interest and a total of $52,000.

Step-by-step explanation:

To calculate the simple interest earned on an investment, you can use the formula I = PRT, where I is the interest, P is the principal amount, R is the interest rate, and T is the time in years. Applying this formula to the given question:

I = $34,000 × 0.06 × 9

The interest earned over 9 years is:

I = $34,000 × 0.06 × 9 = $18,360

So, the total amount at the end of 9 years will be the original investment plus the interest earned:

Total Amount = Principal + Interest = $34,000 + $18,360 = $52,360

Looking at the options provided, none exactly match the correct calculation. But based on the calculations made, the closest incorrect answer provided (without choosing it as the right answer) would be Option D: $18,000 in interest; $52,000 total.