Question

Nicole deposits $2,136 in a savings account paying 5.36% interest. To the nearest dollar, how much money does Nicole have in total after nine years? a. $213 b. $1,030 c. $1,272 d. $3,166

Answer 1

The answer to this question is D on e2020. I just took the test. :)

Answer 2

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=9\ years\\ P=\$2,136\\ A=?\\r=0.0536`

substitute in the formula above

`A=2,136(1+0.0536*9)`

`A=2,136(1.4824)`

`A=\$3,166.41`

Round to the nearest dollar

`A=\$3,166`

therefore

the answer is the option D

`\$3,166`