Question

Nicole deposits $2,136 in a savings account paying 5.36% interest. To the nearest dollar, how much money does Nicole have in total after nine years? a. $213 b. $1,030 c. $1,272 d. $3,166

Answer 1

Given :

Principle : $2136

Rate of interest : 5.36%

Time : 9 years

To find :

The total amount received by Nicole after 9 years (nearest dollar).

Solution :

To find the amount, first we should find the simple interest.

Simple interest :

$\sf \dashrightarrow SI = \dfrac{P \times R \times T}{100}$

$\sf \dashrightarrow \dfrac{2136 \times 536 \times 9}{100 \times 100}$

$\sf \dashrightarrow \dfrac{534 \times 536 \times 9}{25 \times 100}$

$\sf \dashrightarrow \dfrac{534 \times 134 \times 9}{25 \times 25}$

$\sf \dashrightarrow \dfrac{534 \times 1206}{625}$

$\sf \dashrightarrow \cancel \dfrac{644004}{625} = 1030.4064$

Now, we can find the total amount.

Total Amount :

$\sf \dashrightarrow Simple \: Interest + Principle$

$\sf \dashrightarrow 1030.4064 + 2136$

$\sf \dashrightarrow 3166.4064$

As we can see that the answer obtained is nearest to 3166.

Hence, the total amount received by Nicole is $3166.

Thus, option (D) is the correct option.