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

To calculate the interest earned over 5 months on an investment of $94,000 at an annual interest rate of 17.75%, you first convert the annual rate to a monthly rate by dividing by 12 (since there are 12 months in a year). Then, multiply this monthly rate by the number of months (5) and the principal amount ($94,000).Annual interest rate = 17.75%Monthly interest rate = 17.75% / 12 = 1.47917%Interest for 5 months = (1.47917% * 5) * $94,000 = 7.39583% * $94,000 = $6,952 (approximately).

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