Question

If I invest $1,000 at an 8.5% interest rate, how much money will I earn over 6 years? A. $5,100 B. $1,510 C. $510 D. $85

Answer 1

The correct answer is B.

Explanation:

You first start by converting 8.5 to a decimal by dividing by 100 like this:

`8.5/100=0.085`

Then you multiply 0.085 by 1,000 like this:

`0.085*1000=85`

But we need to multiply 85 by 6 year which give us: 510.

We now add 1,000 and 510 together which gives us 1,510.