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.

12. The amount of interest earned in the first year is:

a. $1,606.77

Nope, Just asking about the interest (I = Prt). Your answer was for the Amount which equals principle plus interest (A = P + I) or (A + P + Prt).

Return to Homepage | Question #13