For a Fixed Rate and Principal, the Interest Earned in a Bank

question 12

Multiple Choice

For a fixed rate and principal, the interest earned in a bank account paying simple interest varies directly with the length of time the principal is left on deposit. If an investment of $7,000 earns $700 in 2 years, how much will it earn in 8 years?

• A) $2,700
• B) $2,850
• C) $2,750
• D) $2,900
• E) $2,800

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Definitions:

Average Product

The total output produced per unit of a resource employed.

Marginal Product

The extra production resulting from the use of one additional unit of a specific input while holding other inputs steady.

Total Cost

The sum of all costs associated with the production or provision of a good or service, including fixed and variable costs.

Variable Cost

Expenses that vary in relation to the amount of production or operations.