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