Question

Nikita invest 2000 into a bank account with a 4% annual interest rate. In seven years which is the most expensive item she can afford to buy

a) 2,700.
B) 2,500
c) 2,200
D) 3,000

Answer 1

The answer is (a mountain bike priced at $2,500) In Plato

Explanation:

Answer 2

The correct option will be: B) 2,500

Explanation:

Nikita invest 2000 into a bank account with a 4% annual interest rate.

So, the amount of interest in one year will be:
`(2000*0.04)= 80`

and the amount of interest in 7 years will be:
`(80*7)=560`

Thus, the total money in her account after 7 years
`=(2000+560)=2560`

So, the most expensive item she can afford to buy will be: 2500