On September 4 Fred Made a $25,000 Loan to Ricky

Multiple Choice

On September 4 Fred made a $25,000 loan to Ricky for an investment that was guaranteed to earn an interest rate of 40%. On March 11 of the following year, Ricky cashed in his investment and received the interest as had been promised. How much interest had he earned?

A) $2,965
B) $5,151
C) $2,186
D) $4,849
E) $16,083