Question

Kayleigh wants to buy a car that costs $17,360. She deposits $14,000 into a savings account that earns 8% interest. How long must Kayleigh leave the money in the savings account to be able to buy the car?

A.) 16 years

B.) 4.5 years

C.) 3 years

D.) 3 months

Answer 1

I=Prt, P = principle, r = rate, and t = time.

t = 3 years

Answer 2

The correct answer is option C.) 3 years.

Explanation:

Let's start by analyzing the information we have.

We know that Kayleigh wants to buy a car that costs $ 17360.

She deposits $ 14,000. Therefore she will be missing $ 3360 to buy the car.

The money has been deposited in a savings account that generates 8% interest annually.

That means it will generate $ 1120 per year:

14000 x 0.08 = 1120.

If we multiply the amount of interest by 3 years we will obtain the sum of $3360 :

1120 x 3 = 3360

And in this way we will reach the money needed to buy the car:

3360 + 14000 = 17360.

Therefore the correct answer is option C.