Question

Katherine invested $140.she earned a simple interest of 4% per year on the initial investment. If no money was added or removed from the investment what was the amount of interst katherine received at the end of two years?

Answer 1

Interest per year = 4% x $140 = $5.60

Interest for 2 years = $5.60 x 2 = $11.20

Total amount at the end of 2 years = $11.20 + $140 = $151.20

Answer: $151.20