June has a savings account with an annual simple interest rate of 2.6%. She hopes to gain $6,500 in...

Question

June has a savings account with an annual simple interest rate of 2.6%. She hopes to gain $6,500 in interest over a period of eleven years. To accomplish this, June invested $17,801 in the account, but later realized that this was not enough money. To the nearest dollar, how much more money should June have initially invested to reach her goal?
a. $6,335
b. $3,715
c. $1,409
d. $4,926
Please select the best answer from the choices provided
a. O
b. O
c. O
d. O

SnapAndSolve AI · Accepted Answer

To find out how much more June should have invested, 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.

June wants to earn $6,500 in interest over 11 years at a rate of 2.6%.

First, calculate the total principal needed:

6500 = P * 0.026 * 11

P = 6500 / (0.026 * 11) = 6500 / 0.286 = 22,727.27

June initially invested $17,801, so the additional amount needed is:

22,727.27 - 17,801 = 4,926.27

To the nearest dollar, June should have invested $4,926 more.

The correct answer is d. $4,926.

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