The interest that the savings earned in a year in terms of hours of work is <u>B. 20 hours</u>.
<h3>What is the interest?</h3>
Interest is the additional earning obtained from an investment.
It is computed as the principal multiplied by the annual percentage rate (APR) and the period.
Earnings per hour = $10
Investment = $4,000
APR = 5%
Period of investment = 1 year
Interest earned = $200 ($4,000 x 5% x 1)
Interest earned expressed as hours = 20 hours ($200/$10)
Thus, the investor, who earns $10 per hour, earns <u>20 hours</u> in interest by investing $4,000 at 5% in a year.
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