Question

Which expression represents the amount of interest earned on d dollars at an interest rate of 2​%?

0.2d dollars     
200d dollars     
2d dollars     
0.02d dollars

Answer 1

It is given to us that the interest rate is 2%.

We know that 2% can be rewritten as $\frac{2}{100}$. Now, we also know that in decimal form, $\frac{2}{100}=0.02$.

Therefore, the interest earned on d dollars at an interest rate of 2% will be "2% of d" which can be rewritten as$0.02 \times d=0.02d$. This is because  in math, "of" means the same as multiplication.

Thus, out of the given options, the last option is the correct option.