Question

If you invest $2,000 today in a bank that gives you a 4 percent annual interest rate, which of these items can you buy in seven years?

Answer 1

assuming simple interest
I=PRT
prinicipal=P
R=rate
t=time in years
I=interst

P=2000
r=0.04
T=7

I=2000*0.04*7
I=560

2000+560=2560

you can buy something that costs $2560