Question

Which of these would earn the sam interest as a $150 principal at a 4% annual interest for 2 years

1.) $300 at 2% for 2 years
2.) $150 at 6% for 18 months
3.) $400 at 3% for 1 year
4.) $100 at 1% for 8 years
5.) $50 at 48% for 6 months ​

Answer 1

9514 1404 393

Answer:

1, 3, 5

Explanation:

The interest earned is given by the formula ...

I = Prt

For the reference amount, that is ...

I = ($150)(0.04)(2) = $12

For the choices, the earned interest amounts are ...

1) ($300)(.02)(2) = $12

2) ($150)(.06)(1.5) = $13.50

3) ($400)(.03)(1) = $12

4) ($100)(.01)(8) = $8

5) ($50)(0.48)(0.5) = $12

Accounts 1, 3, 5 would earn the same interest.