Question

Bob wants to buy a car. He puts $8,000 in a savings account that has a

Answer 1

9514 1404 393

Answer:

  B.  $8,960

Step-by-step explanation:

Use your number sense.

If the account earns interest, the balance will increase from the initial deposit of $8000. The only sensible answer choice is B, $8960.

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If you want to actually figure it out, the balance is given by ...

  A = P(1 +rt)

  A = 8000(1 +0.04·3) = 8000(1.12) = 8960 . . . . matches choice B