If you receive $100 000 back as principal and interest at the end of the year for an initial investment of $93 456 at the start of the year,what interest has been earned on your investment?
A) 6.54%
B) 65.4%
C) 7.00%
D) 70.00%

Question

Quizplus · Accepted Answer

To find out the interest earned, we need to calculate the difference between the final amount received and the initial investment.

Final amount = Principal + Interest = $100,000
Initial investment = $93,456

Interest earned = Final amount - Initial investment = $100,000 - $93,456 = $6,544

Now, we need to calculate the percentage of interest earned on the initial investment:

Interest percentage = (Interest earned / Initial investment) x 100
= ($6,544 / $93,456) x 100
= 7.00%

Therefore, the answer is C, 7.00%.

If You Receive $100 000 Back as Principal and Interest