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KATRIN_1 [288]
3 years ago
12

Beth deposited $4000 in a college fund earning 3.5% simple interest. What was the total interest earned at the end of 12 years?

Mathematics
1 answer:
AlexFokin [52]3 years ago
6 0
<span>Assume compounded yearly A = P(1+0.035)^12 is amount after 12 years A = 4000(1.035)^12 = 4000(1.511) = 6044.27 but 4000 of this is Principal, so Interest is I = A-P = 2044.27 Since this does not fit your options, assume simple interest of 0.035 x 12 years I = (0.035)(12)(4000) = 1680 thus B</span>
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