Question

Isabella deposited $1,400 in a savings account at her bank. Her account will earn an annual simple interest rate of 6.6%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years? A. $2,601.20 B. $1,498.50 C. $192.40D. $3,213

Answer 1

Answer: A is the correct answer

Explanation:

Isabella deposited $1,400 in a savings account at her bank. This means that her principal, p is $1400.

Her account will earn an annual simple interest rate of 6.6% and it will be for 13 years. This means that the interest would be fixed since it is on the same principal each year. The formula for simple interest is expressed as

I = PRT/100

Where p is principal

R is the rate

T is the time.

I is the interest after t years

From the information given,

P = 1400

T= 13

R = 6.6

I = (1400 × 6.6×13)/100

I = 1201.2

Total amount = interest + principal

The amount of money saved after 13 years = 1201.2 + 1400 = $2601.2

Answer 2

A. $2,601.20

Explanation:

This is a simple interest problem.

The simple interest formula is given by:

`E = P*I*t`

In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

After t years, the total amount of money is:

`T = E + P`.

In this problem, we have that:

She deposited $1,400 in savings. This means that
`P = 1400`.

Annual interest rate of 6.6%, so
`I = 0.066`.

13 years, so
`t = 13`.

The interest is:

`E = P*I*t = 1400*0.066*13 = 1201.20`

Her total amount is

`T = E + P = 1400 + 1201.20 = 2601.20`.

The correct answer is:

A. $2,601.20