During years 2 and 3 combined, the account earned $10 compound interest. How much was in simple interest?

A) $30
B) $80
C) $105
D) $110
E) $120

Question

During years 2 and 3 combined, the account earned $10 compound interest. How much was in simple interest?A)  $30B)  $80C)  $105D)  $110E)  $120

Brooke Hackbarth · Accepted Answer

Final Answer : C, Explanation :  The account earned $10 compound interest during years 2 and 3 combined. This means that the interest earned in year 2 was $5, and the interest earned in year 3 was $5. The simple interest earned during years 2 and 3 combined is $10.

During years 2 and 3 combined, the account earned $10 compound interest. How much was in simple interest?

A) $30
B) $80
C) $105
D) $110
E) $120

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Learning Objectives

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