Question

You invest $4,000.00 for six months at a 4.25% APR. How much interest will you earn?

Answer 1

[4000(0.042
5)]/2=$85 this is the answer...

Answer 2

The correct answer is that the interest earned in 6 months for an investment of $ 4,000.00 at an interest rate of 4.25% per year was $ 85.

I = P * i * n where: I = earned interest, P = capital

i = annual interest, n = time

I =? P = $ 4,000.00 i = 4.25% n = 1/2 years

I = $ 4,000.00 * 0.0425 * 0.5

I = $ 85.00