Jose invested $5000 into a fund with an interest rate of 4.8%.
How much interest would he earn after 2 years?
Responses
A$240
$240
B$24,000
$24,000
C$480
$480
D$48,000
To calculate the interest earned, we can use the formula:
Interest = Principal × Rate × Time
where Principal is the initial investment, Rate is the interest rate, and Time is the number of years.
In this case, the principal is $5000, the rate is 4.8%, and the time is 2 years.
Using the formula:
Interest = $5000 × 0.048 × 2 = $480
Therefore, Jose would earn $480 in interest after 2 years. The correct answer is C$480.