Question

You deposit $4500 in an account that earns 2% per year simple interest. The

equation that represents this situation is:
A(n) = 4500 + (n − 1)(0.02.4500)
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How much will you have in the account at the beginning of the 7th year?
Round your answer to the nearest dollar.
A. $5040
OB. $5130
OC. $4590
D. $9900

Answer 1

based on the given formula the amount calculated is for the beginning of the year.

substituting 1 you get 4500 which is beginning of the year 1 when you deposited.

based on that logic substituting 7 for beginning of year 7 will be

4500 + 6 * 0.02 * 4500

4500 + 540

5040

option A.