You have just put $1,000 in an investment that offers a 12% annual yield,using a simple interest calculation.At the end of two years your interest earned will be
A)$120.00.
B)$144.00.
C)$240.00.
D)$254.40.

Question

Quizplus · Accepted Answer

Simple interest only calculates interest based on the initial amount invested, without taking into account any interest earned in previous periods. Therefore, the interest earned after two years can be calculated as follows: 
Interest = Principal x rate x time 
Interest = $1,000 x 0.12 x 2 
Interest = $240.00 
Therefore, the correct answer is choice C.

You Have Just Put $1,000 in an Investment That Offers