How much interest could you earn, over 5 months on an investment of $94,000 at 17.75%?
A) $39,167
B) $6,952
C) $8,342
D) $993
E) $4,216

Question

Quizplus · Accepted Answer

The interest earned on an investment is calculated using the formula I = PRT, where I is the interest, P is the principal amount ($94,000), R is the annual interest rate (17.75% or 0.1775 when converted to a decimal), and T is the time in years. For 5 months, T = 5/12 years. Plugging in the values: I = $94,000 * 0.1775 * (5/12) = $6,952.

How Much Interest Could You Earn, Over 5 Months on an Investment