1. principal
a. the original amount invested
b. the total amount earned
c. interest plus original amount invested
d. interest on a loan

2. interest is calculated
a. adding the interest rate to the principal
b. multiplying the principal by the interest rate
c. multiplying the principal by the interest rate and the time
d. multiplying the principal by the interest rate and dividing by the time

3. you invest $2,000.00 at a rate of 4% apr for a 3 months. how much interest did you earn?
a. $80.00
b. $40.00
c. $20.00
d. $10.00

4. you earn $10.00/ hour. you invest $4,000.00 at an interest rate of 5% apr for a year. how much interest did that savings earn in a year in terms of hours of work?
a. 100 hours
b. 20 hours
c. 40 hours
d. 400 hours