Question

If you invest $2,000 today in a bank that gives you a 4 percent annual interest rate, which of these items can you buy in seven years?
A) A home theater system worth $3,000
B) A designer dress worth $2,700
C) A mountain bike worth $2,500

Answer 1

1any one of the three
2 A and C both
3 B and C both

Answer 2

There is this equation, A = P(1+r)^(t)
Where A is the ending amount
P is the starting amount
r is the rate
and t is the number of years

we can plug in P = 2000
r = 0.04
and t = 7
into this equation and get A = 2000(1.04)^(7)

now if you plug that into your calculator, that will be how much money you will have after 7 years
the value of the items you can purchase will have to be less than that number

I hope this helped :)

Answer 3

@jigglypuff314 This is what I got for my final answer /_^ 2631.86355

Answer 4

although that's correct let's clean it up...

Answer 5

you have way too many decimal places
most items for sale at that amount are listed as 1000.00

Answer 6

@UsukiDoll Your right so its either B or C

Answer 7

O_O well for one of the items... you need to pay the difference

Answer 8

sigh...interest doesn't give that much these days T_T

Answer 9

you can only for something if you *have* more money than the item's price
(my grammar has failed me, I apologize)

Answer 10

you have $2631.86 and you can only use that money

Answer 11

no credit cards xD

Answer 12

@jigglypuff314 @UsukiDoll Thank you guys <3 ur the best haha