You invest $800 on May 25,2007,on what day will you have earned exactly $31.96 of interest if your investment earns simple interest at r = 6%?
A)August 31,2007
B)January 20,2008
C)January 23,2008
D)January 25,2008

Question

Quizplus · Accepted Answer

To solve the problem, we can use the simple interest formula:

I = Prt

Where I is the interest, P is the principal (initial investment), r is the annual interest rate as a decimal, and t is the time in years.

We want to find the time t that will give us an interest of $31.96.

$31.96 = $800 x 0.06 x t

$31.96 / ($800 x 0.06) = t

t = 0.83 years or approximately 10 months (rounded to the nearest month)

To find the date, we need to add 10 months to May 25, 2007:

May 25, 2007 + 10 months = March 25, 2008

However, we need to check which of the answer choices is closest to March 25, 2008. The closest one is January 23, 2008, which is approximately 9 months and 29 days after May 25, 2007. Therefore, the best choice is C.

You Invest $800 on May 25,2007,on What Day Will You