The amount of interest is determined by multiplying the amount in savings by the:
A)annual interest rate.
B)time period.
C)number of months in a year.
D)time period and number of months.
E)annual interest rate and the time period.

Question

Quizplus · Accepted Answer

The amount of interest earned on savings is determined by multiplying the amount in savings by the annual interest rate and the time period the money is invested or saved. This is because interest is a function of both the rate at which money grows and the duration over which it grows.

The Amount of Interest Is Determined by Multiplying the Amount