Answer:
1. The correct answer is B. $ 1,640
2. The correct answer is B. 6%
Step-by-step explanation:
1. Let's review the information provided to answer to us to answer the question correctly:
Interest earned = $ 631.40
Time of investment = 7 years
Interest rate = 5.5% simple interest rate = 0.055
How much was Basil’s investment?
For answering the question, let's use the formula given, this way:
I=prt
Replacing with the values we know:
631.40 = p * 0.055 * 7
631.40 = 0.385p
p = 631.40/0.385
p = $ 1,640
The correct answer is B. $ 1,640
2. 1. Let's review the information provided to answer to us to answer the question correctly:
Interest earned = $ 249.60
Time of investment = 6 1/2 years = 6.5
Amount of investment = $ 640
What was the simple interest rate?
For answering the question, let's use the formula given, this way:
I=prt
Replacing with the values we know:
249.60 = 640 * r * 6.5
249.60 = 4,160r
r = 249.60/4,160
r = 0.06
The correct answer is B. 6%
