If you invest $1200 for two years at 6.9% per annum simple interest,what is the value of your investment at the end of the two years?
A) $165.60
B) $1365.60
C) $1656.00
D) $2856.00

Question

Quizplus · Accepted Answer

Using the formula for simple interest: 
I = P * r * t 
where I is the interest earned, P is the principal or initial investment, r is the annual interest rate, and t is the time in years.
We have: 
I = 1200 * 0.069 * 2 = $165.60 
The value of the investment at the end of two years will be the sum of the principal and the interest earned: 
Value = Principal + Interest = $1200 + $165.60 = $1365.60. 
Therefore, the best choice is B.

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