Beth deposited $4,000 in a college fund earning 3.5% simple interest.
What was the total interest earned at the end of 12 years?
Question 4 options:
$1,166.67
$1,680.00
$11,666.67
$16,800.00
To find the total interest earned at the end of 12 years, we need to calculate the simple interest.
The formula for simple interest is: Interest = Principal x Rate x Time.
In this case, the principal is $4,000, the rate is 3.5% (or 0.035), and the time is 12 years.
Using the formula:
Interest = $4,000 x 0.035 x 12 = $1,680.
Therefore, the total interest earned at the end of 12 years is $1,680.
So, the correct answer is: $1,680.00.