You invest $2000 in an account at 4.5% per year simple interest. how much will you have in the account at the beginning of the 8th year? round your answer to the nearest whole dollar. a. $2560 b. $2640 c. $2720 d. $2630

answer is 2720

solution below

First, converting R percent to r a decimal

r = R/100 = 4.5%/100 = 0.045 per year.

solving our equation:

A = 2000(1 + (0.045 × 8)) = 2720  

A = $2,720.00

the total amount accrued, principal plus interest, from simple interest on a principal of $2,000.00 at a rate of 4.5% per year for 8 years is $2,720.00

example 2 – simplify: step 1: completely factor both the numerators and denominators of all fractions. step 2: change the division sign to a multiplication sign and flip (or reciprocate) the fraction after the division sign; essential you need to multiply by the reciprocal. step 3 : cancel or reduce the fractions.