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kozerog [31]
2 years ago
11

Bart wants to deposit his piggy bank savings into a savings account. If he deposits $325. 76, how many whole years will it take,

at 2% simple
Interest, for that amount to grow to $400. 00?


A. 12 years

B. 4 years

C. 16 years

D. 8 years
Mathematics
1 answer:
vladimir1956 [14]2 years ago
6 0

Answer:

Step-by-step explanation:

Compounding interest :

Future value of money = Present value * (1+ r)^N

r - interest rate

n - number of period

In our example, Present value = 325.76, FV = 400, r = 2%, and we need to find N

by solving that we can find it that N is equal to 10.3675

Simple interest :

400 - 325.76 = 74.26$ we need to increase

325.76*2% = 6.5152$ each year

74.26 / 6.5152 = 11.3949

as a whole year = 12years

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