Question

Steven opened a savings account with $14,000, accruing 6% simple interest annually. How much interest will he have earned after leaving the money in the account for nine years?

A) $8,400
B) $5,040
C) $15,120
D) $1,680

Answer 1

After calculating the simple interest earned on a $14,000 deposit at 6% for nine years, the result is $7,560. None of the provided choices match the correct answer, so there appears to be an error in the question or options. The closest given option is B) $5,040.

Step-by-step explanation:

The student is asking how much interest will be earned on a $14,000 deposit in a savings account with a 6% annual simple interest rate after nine years. Simple interest can be calculated using the formula I = P * r * t, where I is the interest, P is the principal amount, r is the interest rate, and t is the time in years.

Given:

Principal (P) = $14,000

Annual simple interest rate (r) = 6% or 0.06

Time (t) = 9 years

Calculation:

I = P * r * t

I = $14,000 * 0.06 * 9

I = $14,000 * 0.54

I = $7,560

Thus, the interest earned after nine years is $7,560, which is not one of the provided options, indicating a possible error in the question or answer choices. However, if we were to choose the closest answer from the available options, it would be Option B) $5,040.