Question

Nikita invests $2,000 into a bank account with a 4% annual interest rate. In seven years, which is the most expensive item she could afford to buy?

Answer 1

The answer is (a mountain bike priced at $2,500) In Plato

Step-by-step explanation:

Answer 2

Most expensive thing she can afford after 7 years is of worth 2560$

Step-by-step explanation:

We need to calculate the interest on $2000 at 4% interest per year after 7 year(s).

The formula we'll use for this is the simple interest formula, I = P*r*t, I is the interest after t years, r is interest rate and P is the invest amount.

P = 2000$, r = 4/100 = 0.04, t = 7 years

So , I = 2000* 0.04 * 7 = 560$

Total amount she can retrieve from bank = P+I = 2000 + 560 = 2560$

Most expensive thing she can afford after 7 years is of worth 2560$