QuestenaPractice that shows what to review next
SearchCreate a test
Question 114

Savings of 1500 dollars earn 4% simple interest per year for 3 years. Which calculation does NOT give the final total by the simple-interest method?

  1. 1500 + 3 × 0.04 × 1500
  2. 1500 × 1.12
  3. 1500 × 1.04 × 1.04 × 1.04Correct answer
  4. 1500 + 180

Explanation

Simple interest is 1500 × 0.04 × 3 = 180, so the final total is 1680. Multiplying by 1.04 three times gives more than 1680 and incorrectly treats each year's interest as part of the next year's base.

Continue with this test

Start practice
Understand this topic (≈5 min)Back to test
Question 114: Savings of 1500 dollars earn 4% simple interest per year… · Percentages · Questena