Question

7. RP.1.3 17. A certificate of deposit with principal $150 earns 4% annual interest for 2 years. Select all the options that would earn the same amount of interest. $300 at 2% for 2 years $150 at 6% for 18 months $400 at 3% for 1 year $100 at 1% for 8 years $50 at 48% for 6 months

Answer 1

principal = P = $150

Interest rate = r = 4% = 4/100 = 0.04 (decimal form)

time = 2years

Apply the simple interest formula:

I = P x r x t

I = 150x0.04x2 = $12

Calculate the interest of each option:

$300 at 2% for 2 years

I = 300x(2/100) x 2 = $12

$150 at 6% for 18 months

18 months = 18/12 = 1.5 years

I= 150 x (6/100) x 1.5 = $13.5

$400 at 3% for 1 year

I= 400 x (3/100) x 1 = $12

$100 at 1% for 8 years

I= 100 x (1/100) x 8 = $8

$50 at 48% for 6 months​

6 months = 1/2 year

I= 50x (48/100) x 1/2 = $12

Correct options:

$300 at 2% for 2 years

$400 at 3% for 1 year

$50 at 48% for 6 months​