Question

You invest $1300 in an account at 2% per year simple interest. The equation

that represents this scenario is:
A(n) = 1300 + (n - 1)(0.02.1300)
How much will you have in the account in year 6? Round your answer to the
nearest dollar.
0
A. $2600
B. $1430
C. $1326
D. $1456

Answer 1

B. $1430

Explanation:

Put 6 in the equation for n and do the arithmetic.

A(6) = 1300 +(6 -1)(0.02·1300)

= 1300(1 +5(.02)) = 1300(1.1)

A(6) = 1430 . . . . matches choice B