Question

Kunio puts $2,200.00 into savings bonds that pay a simple interest rate of 2.4%. How much money will the

bonds be worth at the end of 4 years?
O $4,734.40
O $2,387.25
O $2,411.20
O $211.20

Answer 1

$2,411.20

Explanation:

Use the simple interest formula: A = P(1 + rt)

A = Final amount (?)

P = Starting amount (2200)

r = Rate (0.024)

t = Time in years (4)

A = 2200(1 + 0.024 · 4)

A = 2200(1.096)

A = 2411.2