Question

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?

A. 100 hours
B. 20 hours
C. 40 hours
D. 400 hours

Answer 1

Where:
P is the principal amount, $4000.00.r is the interest rate, 5% per year, or 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 to get that:
The interest is: $1000.00 /5 = $200/$10=20 Hours