Question

Abigail has an account that pays 6.92% simple interest per year and wants to accumulate $5,896 in interest from this account over six years. How much money should Abigail invest in this account to meet this goal? a. $2,448.02 b. $8,344.10 c. $14,200.39 d. $20,096.67

Answer 1

C

Explanation:

Answer 2

we know that

The simple interest formula is equal to

`I=Prt`

`P=I/(rt)`

where

I is the amount of money in interest

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

in this problem we have

`t=6\ years\\ I=\$5,896\\ P=?\\r=0.0692`

substitute in the formula above

`P=5,896/(0.0692*6)=\$14,200.39`

therefore

the answer is

`\$14,200.39`