which of the following investments will earn the smallest amount of interest? a. $8,030, invested for 2…

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Calculate interest for option a

For option a, $P = 8030$, $r=0.02$, and $t = 2$. $I_a=Prt=8030\times0.02\times2=8030\times0.04 = 321.2$

Step3: Calculate interest for option b

For option b, $P = 1901$, $r = 0.04$, and $t=8$. $I_b=Prt=1901\times0.04\times8=1901\times0.32 = 608.32$

Step4: Calculate interest for option c

For option c, $P = 5330$, $r = 0.02$, and $t = 6$. $I_c=Prt=5330\times0.02\times6=5330\times0.12 = 639.6$

Step5: Calculate interest for option d

For option d, $P = 3970$, $r = 0.04$, and $t = 6$. $I_d=Prt=3970\times0.04\times6=3970\times0.24 = 952.8$

Answer:

A. $321.2$