Calculate the amount of interest that would be earned on an account of $47,500 if it earned 6.4% for 293 days.
A) $89,072
B) $3,040
C) $2,440
D) $17,442
E) $11,298

Question

Quizplus · Accepted Answer

The interest can be calculated using the formula for simple interest: Interest = Principal x Rate x Time. Here, the principal is $47,500, the rate is 6.4% (or 0.064), and the time is 293/365 years. The calculation gives $2,440.

Calculate the Amount of Interest That Would Be Earned on an Account