Question

How much interest is earned on an initial investment of $700 with a 5% annual rate for 2 years? A $700B $350C $70D $35

Answer 1

Let's calculate the 5% of $700 using a rule of three:

This way,

$\begin{gathered} x=\frac{700\cdot5}{100} \\ \Rightarrow x=35 \end{gathered}$

$35 is earned each year, For two years, the earnings would be $70

Answer: C. $70