Question

lashea would like to invest her $100 in birthday money. which option will give her the most money at the end of the investment period?

1 year at 8 percent
1.5 years at 7 percent
2 years at 6.5 percent
3 years at 4 percent

Explanation:

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<reasoning>

Calculate interest for Option 1

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &I = P \cdot r \cdot t \\ &I = 100 \cdot 0.08 \cdot 1 = 8 \\ &A = 100 + 8 = 108 \end{aligned}$$

\]

Calculate interest for Option 2

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &I = P \cdot r \cdot t \\ &I = 100 \cdot 0.07 \cdot 1.5 = 10.5 \\ &A = 100 + 10.5 = 110.5 \end{aligned}$$

\]

Calculate interest for Option 3

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &I = P \cdot r \cdot t \\ &I = 100 \cdot 0.065 \cdot 2 = 13 \\ &A = 100 + 13 = 113 \end{aligned}$$

\]

Calculate interest for Option 4

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &I = P \cdot r \cdot t \\ &I = 100 \cdot 0.04 \cdot 3 = 12 \\ &A = 100 + 12 = 112 \end{aligned}$$

\]

Compare the total amounts

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &113 > 112 > 110.5 > 108 \end{aligned}$$

\]
</reasoning>

<answer>
<mcq-option>1 year at 8 percent</mcq-option>
<mcq-option>1.5 years at 7 percent</mcq-option>
<mcq-correct>2 years at 6.5 percent</mcq-correct>
<mcq-option>3 years at 4 percent</mcq-option>
</answer>

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Answer:

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<reasoning>

Calculate interest for Option 1

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &I = P \cdot r \cdot t \\ &I = 100 \cdot 0.08 \cdot 1 = 8 \\ &A = 100 + 8 = 108 \end{aligned}$$

\]

Calculate interest for Option 2

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &I = P \cdot r \cdot t \\ &I = 100 \cdot 0.07 \cdot 1.5 = 10.5 \\ &A = 100 + 10.5 = 110.5 \end{aligned}$$

\]

Calculate interest for Option 3

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &I = P \cdot r \cdot t \\ &I = 100 \cdot 0.065 \cdot 2 = 13 \\ &A = 100 + 13 = 113 \end{aligned}$$

\]

Calculate interest for Option 4

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &I = P \cdot r \cdot t \\ &I = 100 \cdot 0.04 \cdot 3 = 12 \\ &A = 100 + 12 = 112 \end{aligned}$$

\]

Compare the total amounts

Using the Simple Interest Formula knowledge point
\[

$$\begin{aligned} &113 > 112 > 110.5 > 108 \end{aligned}$$

\]
</reasoning>

<answer>
<mcq-option>1 year at 8 percent</mcq-option>
<mcq-option>1.5 years at 7 percent</mcq-option>
<mcq-correct>2 years at 6.5 percent</mcq-correct>
<mcq-option>3 years at 4 percent</mcq-option>
</answer>

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