Arithmetic Reasoning · Question 92

Question 92 of 240

How much simple interest does $5,000 earn in 2 years at 4 percent a year?

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Correct answer to question 92 (Arithmetic Reasoning): $400

Method

Simple interest is principal times rate times time: 5,000 x 0.04 x 2 = $400. The choice $200 covers only one year.

Updated: November 2026

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