A saver puts 500 pounds away for 2 years at 4 percent simple interest …

Question

A saver puts 500 pounds away for 2 years at 4 percent simple interest each year. The interest earned is:

Accepted Answer

D. 40 pounds

1. Four percent of 500 is 20.
2. Two years give twice that.
3. The interest is 40 pounds.
_Source: OpenStax Prealgebra 2e, Chapter 6, Percents._

Answer

60 pounds

Answer

80 pounds

Answer

20 pounds

A saver puts 500 pounds away for 2 years at 4 percent simple interest each year. The interest earned is: