Questions 11-15 all refer to the following
situation: The First Ojai National Bank advertises a CD that pays
8.2% simple interest for two years. Suppose we were to invest
$1,485 in such a CD.
13. The amount of interest earned in the second year is:
d. $12,177.00
Nope,
remember, i = P r t where
P = Principal amount, in dollars.
r = Interest rate (expressed as a proportion).
t = Duration of loan, in years.