Faith invests $4,500 in an account that pays 4% simple interest. How much money will she have at the end of eight years?

A) $4,680
B) $5,367
C) $5,940
D) $6,122
E) $6,159

Question

Faith invests $4,500 in an account that pays 4% simple interest. How much money will she have at the end of eight years?A)  $4,680B)  $5,367C)  $5,940D)  $6,122E)  $6,159

Daniel Shirazi · Accepted Answer

Final Answer : C, Explanation :  Simple interest is calculated using the formula I = PRT, where P is the principal amount ($4,500), R is the rate (4% or 0.04), and T is the time (8 years). The interest is $4,500 * 0.04 * 8 = $1,440. Adding the interest to the principal gives $4,500 + $1,440 = $5,940.

Faith invests $4,500 in an account that pays 4% simple interest. How much money will she have at the end of eight years?

A) $4,680
B) $5,367
C) $5,940
D) $6,122
E) $6,159

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