Answer:
Anything that does not cost more than $2,560.00
Step-by-step explanation:
Provided that Nikita is spending money that she had invested and the amount she collected over the period of 7 years. She can buy any item that costs no more than $2,560.00 but how?
It is a problem of simple interest:
Here the principal amount (P) = $2,000.00
Interest rate (r) = 4%
Time period (t) = 7 years
So, total amount that she would get by the end of 7 years is:
![A=P+SI](https://tex.z-dn.net/?f=A%3DP%2BSI)
![SI=\frac{P\times r\times t}{100}](https://tex.z-dn.net/?f=SI%3D%5Cfrac%7BP%5Ctimes%20r%5Ctimes%20t%7D%7B100%7D)
Plugging the values we get:
![SI=\frac{2000\times 4\times 7}{100}=560.00](https://tex.z-dn.net/?f=SI%3D%5Cfrac%7B2000%5Ctimes%204%5Ctimes%207%7D%7B100%7D%3D560.00)
So the interest collected over 7 years is $560.00
Therefore, the total amount after 7 years is:
![\$2000.00+\$560.00=\$2,560.00](https://tex.z-dn.net/?f=%5C%242000.00%2B%5C%24560.00%3D%5C%242%2C560.00)
If Nikita is using this money then the most expensive item that she could buy will cost no more than $2,560.00.