Question

You invest $2000 in an account at 4.5% per year simple interest. How much will you have in the account at the beginning of the 8th year? Round your answer to the nearest whole dollar. A. $2560 B. $2640 C. $2720 D. $2630

Answer 1

Answer:

D. $2630

Step-by-step explanation:

Given,

The principal amount, P = $ 2000,

Annual rate of interest, r = 4.5 % ,

Thus, the interest for 7 years,

$I=\frac{P\times r\times 7}{100}$

$=\frac{2000\times 4.5\times 7}{100}$

$=\frac{63000}{100}$

$=630$

Hence, the amount after 7 years or at the beginning of the 8th year is,

$A=P+I=2000+630=\ 2630$

Option 'D' is correct.

Answer 2

Problem

You deposit $2000 into a bank account paying 4.5% simple interest per year. You left the money in for 8 years. How much interest do you get at the end of those 8 years?

Result

The interest is $720.

Then you add the money you invested to your interest so your answer would be  ' C ',

I think I'm not that great with math but I really hope I helped you .