Question

You invest $2000 in an account at 4.5% per year simple interest. How much will you have in the account at the beginning of the 8th year? Round your answer to the nearest whole dollar. A. $2560 B. $2640 C. $2720 D. $2630

Answer 1

Problem

You deposit $2000 into a bank account paying 4.5% simple interest per year. You left the money in for 8 years. How much interest do you get at the end of those 8 years?

Result

The interest is $720.

Then you add the money you invested to your interest so your answer would be ' C ',

I think I'm not that great with math but I really hope I helped you .

Answer 2

D. $2630

Explanation:

Given,

The principal amount, P = $ 2000,

Annual rate of interest, r = 4.5 % ,

Thus, the interest for 7 years,

`I=(P* r* 7)/(100)`

`=(2000* 4.5* 7)/(100)`

`=(63000)/(100)`

`=630`

Hence, the amount after 7 years or at the beginning of the 8th year is,

`A=P+I=2000+630=\$ 2630`

Option 'D' is correct.