An investor invests $2,500 into a mutual fund and earns 5.75% on the principle for each of three years. How much interest has accrued at the end of the period?
- $413.25
- $4,132.50
- $431.25
- $571.00
To determine the answer, you would use this formula for calculating interest over a period of time.
I=PRT
Or:
Interest equals principle ($2,500) times rate of return (.0575) times length of time (3 years).
Answer 3 is the only one that meets the criteria.
More question:
y = 3x - 2
3x 4y = 22