if you invest $1,500 today in a bank that gives you a 5 percent annual interest rate, which of these items can you buy in two years? A. electronics worth $1,650 B. fitness equipment worth $1,700 C. a holiday package worth $2,000

Question

Mathematics

Leonidas Molina

7 August, 07:04

if you invest $1,500 today in a bank that gives you a 5 percent annual interest rate, which of these items can you buy in two years? A. electronics worth $1,650 B. fitness equipment worth $1,700 C. a holiday package worth $2,000

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Answers (1)

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Giovanny Boyd · Answer 1

Answer: Option A. electronics worth $1650.

Step-by-step explanation:

In this question we have to find out the total amount we get after two years.

So given figures are principal amount (P) = $1500

Rate of interest (R) = 5% annual

Time (T) = 2 years

Now we know the formula of Simple interest (I) = (P*T*R) / 100

⇒ I = (1500*2*5) / 100

⇒ I = 15*2*5

⇒ I = $150

Now total amount after two years will be = $1500 + $150

= $1650

So as per given option A i can purchase an electronics.