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