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Bunuel
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If $2.00 were invested at 4% annual interest at the end of 8 years the 17 Jan 2017, 08:14
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E
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63% (01:09) correct 37% (01:29) wrong based on 104 sessions

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If $2.00 were invested at 4% annual interest at the end of 8 years the total value of investment would be

A. 8(2.04)
B. 2(8)(1.04)
C. 2(8)(1.4)
D. 2 + 8(0.04)
E. 2 + 2(8)(0.04)
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E
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If $2.00 were invested at 4% annual interest at the end of 8 years the 17 Jan 2017, 11:05
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Bunuel
If $2.00 were invested at 4% annual interest at the end of 8 years the total value of investment would be

A. 8(2.04)
B. 2(8)(1.04)
C. 2(8)(1.4)
D. 2 + 8(0.04)
E. 2 + 2(8)(0.04)
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Interest earned = P*R*T= 2(8)(0.04)
total value = initial Principle+Interest earned
= 2 + 2(8)(0.04)

Ans E
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If $2.00 were invested at 4% annual interest at the end of 8 years the 17 Jan 2017, 13:50
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rohit8865
Bunuel
If $2.00 were invested at 4% annual interest at the end of 8 years the total value of investment would be

A. 8(2.04)
B. 2(8)(1.04)
C. 2(8)(1.4)
D. 2 + 8(0.04)
E. 2 + 2(8)(0.04)

Interest earned = P*R*T= 2(8)(0.04)
total value = initial Principle+Interest earned
= 2 + 2(8)(0.04)

Ans E
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Hi, I didn't get why the interest earned is 2(8)(0.04). The interest should not be higher every year? it's not written that he takes off his interest every year or I misunderstood the question?
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If $2.00 were invested at 4% annual interest at the end of 8 years the 17 Jan 2017, 19:24
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LHC8717
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Bunuel
If $2.00 were invested at 4% annual interest at the end of 8 years the total value of investment would be

A. 8(2.04)
B. 2(8)(1.04)
C. 2(8)(1.4)
D. 2 + 8(0.04)
E. 2 + 2(8)(0.04)

Interest earned = P*R*T= 2(8)(0.04)
total value = initial Principle+Interest earned
= 2 + 2(8)(0.04)

Ans E

Hi, I didn't get why the interest earned is 2(8)(0.04). The interest should not be higher every year? it's not written that he takes off his interest every year or I misunderstood the question?
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LHC8717
interest would be higher every year if it is compounded on certain basis(like anually,semianually)
but here it is simple interest calculated over the amount
thus Interest = PRT

hope it clears
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If $2.00 were invested at 4% annual interest at the end of 8 years the 18 Jan 2017, 05:13
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Principal amount = $2
Rate of interest = 4%
Time = 8 years

So Interest earned in 8 years = (2*4*8)/100=2(8)(0.04)
Total value of investment = Principal + interest = 2 + 2(8)(0.04)

Answer E
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If $2.00 were invested at 4% annual interest at the end of 8 years the 23 Jan 2017, 07:14
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Bunuel
If $2.00 were invested at 4% annual interest at the end of 8 years the total value of investment would be

A. 8(2.04)
B. 2(8)(1.04)
C. 2(8)(1.4)
D. 2 + 8(0.04)
E. 2 + 2(8)(0.04)
Show more

Let’s first determine how much interest is earned in 8 years, using the simple interest formula:

interest = principal x rate x time

interest = (2)(0.04)(8)

Since we need the TOTAL VALUE of the investment after 8 years, that would be:

2 + (0.04)(2)(8)

Answer: E
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If $2.00 were invested at 4% annual interest at the end of 8 years the 03 Jun 2019, 07:55
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When no mention of 'compound interest'; go with 'simple interest' !
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