Abigail has an account that pays 6.52% simple interest per year and wants to accumulate $5,096 in interest...

Question

Abigail has an account that pays 6.52% simple interest per year and wants to accumulate $5,096 in interest from this account over six years. How much money should Abigail invest in this account to meet this goal?
a. $2,448.62
b. $8,344.10
c. $14,200.39
d. $20,096.67
Please select the best answer from the choices provided
O A
O B
O C
O D

SnapAndSolve AI · Accepted Answer

To find out how much money Abigail should invest, we use the simple interest formula: I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.

Given: I = $5,096, R = 6.52% = 0.0652, T = 6 years.

Rearranging the formula to solve for P: P = I / (RT)

P = 5096 / (0.0652 * 6) = 5096 / 0.3912 ≈ 13023.47

Since this amount is not exactly one of the options, we choose the closest option, which is c. $14,200.39.

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Abigail has an account that pays 6.52% simple interest per year and wants to accumulate $5,096 in interest...

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