Consider a $1,000 deposit earning 7 percent interest per year for four years. How much total interest is earned on the original deposit (excluding interest earned on interest)?
A) $28.00
B) $30.00
C) $280.00
D) $310.00

Question

Quizplus · Accepted Answer

The total interest earned on the original deposit, excluding interest on interest, is calculated by multiplying the annual interest rate by the principal amount and the number of years. Thus, $1,000 * 7% * 4 years = $280.

Consider a $1,000 Deposit Earning 7 Percent Interest Per Year