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

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. $2,715
c. $1,409
d. $4,926
Please select the best answer from the choices provided
O A
O B
O C
O D

Answer

To find out how much more money 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.

Given: I = $6,500, R = 2.6% = 0.026, T = 11 years.

We need to find P such that:

6500 = P * 0.026 * 11

P = 6500 / (0.026 * 11)

P = 6500 / 0.286

P ≈ 22,727

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

22,727 - 17,801 = 4,926

Therefore, the answer is d. $4,926.

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