Question

if you invest $1,500 today in a bank that gives you a 5 percent annual interest rate, which of these items can you buy in two years? A. electronics worth $1,650 B. fitness equipment worth $1,700 C. a holiday package worth $2,000

Answer 1

Answer: Option A. electronics worth $1650.

Explanation:

In this question we have to find out the total amount we get after two years.

So given figures are principal amount (P)=$1500

Rate of interest (R)= 5% annual

Time (T)=2 years

Now we know the formula of Simple interest(I) = (P×T×R)/100

⇒ I = (1500×2×5)/100

⇒ I = 15×2×5

⇒ I = $150

Now total amount after two years will be = $1500 + $150

= $1650

So as per given option A i can purchase an electronics.