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  1. Principal is___.
AThe original amount invested
BThe total amount earned
CInterest plus original amount invested
DInterest on a loan

  1. Interest is calculated by___.
AAdding the interest rate to the principal
BMultiplying the principal by the interest rate
CMultiplying the principal by the interest rate and the time
DMultiplying the principal by the interest rate and dividing by the time

  1. You invest $2,000.00 at a rate of 4% APR for a 3 months. How much interest did you earn?
A$80.00
B$40.00
C$20.00
D$10.00

  1. You earn $10.00/ hour. You invest $4,000.00 at an interest rate of 5% APR for a year. How much interest did that savings earn in a year in terms of hours of work?
A100 hours
B20 hours
C40 hours
D400 hours

Verified Answer :

warstarter101

1 a
2 c
3 c
4b
I hope  this helped you if not comment

Cetacea

1. Principal is the original amount invested. It is the initial size of the loan or investment. Therefore, the correct answer is A.


2. Interest is calculated by Multiplying the principal by the interest rate and the time. Simple interest is calculated just on the principal. Simple interest is calculated using the formula Simple Interest = Principal Rate Time. Therefore, C is the correct answer.

3. if you invest 2,000.00 at a rate of 4% APR for 3 months. your earning can be calculated as follows

20004/100 = 80

803/12

=20

Therefore, $20, that is C is the correct answer.


4. In the given statement of the question, following can be understood:

P is the principal amount, $4000.00.

r is the interest rate, 5% per year,  

in decimal form, 5/100=0.05.

t is the time involved, 5....year(s) time periods.

So, t is 5....year time periods.

To find the simple interest, we multiply 4000 × 0.05 × 5

The interest in hours is: $1000.00 /5 = $200/$10=20 Hours

Therefore, 20 hours, that is B is the correct answer.  

Learn more about principal and interest here:

https://brainly.com/question/2284670

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