If, on March 11, $12,000 was placed in an investment earning an interest rate of 16%, on what day will the amount of interest earned reach $1,000?
A) Jul. 10
B) Jan.19
C) Apr. 13
D) Nov. 1
E) Sept. 18

Question

Quizplus · Accepted Answer

To find when the interest earned reaches $1,000, use the formula for simple interest: Interest = Principal x Rate x Time. Here, $1,000 = $12,000 x 0.16 x Time. Solving for Time gives approximately 0.5208 years, which is about 190 days. Adding 190 days to March 11 results in September 18.

If, on March 11, $12,000 Was Placed in an Investment