On May 27, Kristina made an investment that earned an interest rate of 9.4%. By November 6 the investment's value had increased to $77,000. What amount of interest had Kristina earned?
A) $3,619
B) $3,102
C) $3,232
D) $5,112
E) $7,238

Question

Quizplus · Accepted Answer

To find the amount of interest earned, we first need to calculate the original amount invested before the interest was added. Given that the investment increased to $77,000 with an interest rate of 9.4%, we can set up the equation: Original Amount + (Original Amount * 0.094) = $77,000. Letting the original amount be x, we have x + 0.094x = 77,000, which simplifies to 1.094x = 77,000. Solving for x gives us x = 77,000 / 1.094 ≈ $70,384.83 as the original amount invested. The interest earned is then $77,000 - $70,384.83 ≈ $6,615.17. However, none of the provided options match this calculation, suggesting a misunderstanding in the calculation process. Reevaluating the approach and considering the correct method to find the interest earned directly from the given options, it seems there was a mistake in the initial calculation. The correct approach involves understanding that the interest earned is the difference between the final amount and the original amount invested. Without the exact original amount provided or a clear way to accurately calculate it from the given options, the correct answer should directly relate to the information provided and the understanding of how interest is calculated over a specific period. Given the discrepancy in the calculation, the focus should be on the methodology of calculating interest and the final amount rather than the specific numerical outcome, which seems to have been miscalculated in this explanation.

On May 27, Kristina Made an Investment That Earned an Interest