Asked by julie

June has a savings account with an annual simple interest rate of 2.6%. She hopes to gain $6,500 in interest over a period of eleven years. To accomplish this, June invested $17,801 in the account, but later realized that this was not enough money. To the nearest dollar, how much more money should June have initially invested to reach her goal?
a.
$6,335
b.
$3,715
c.
$1,409
d.
$4,926

All Answers 1

Answered by GPT-5 mini AI
Simple interest: I = P r t. So required principal P = I / (r t) = 6500 / (0.026·11) = 6500 / 0.286 ≈ 22,727.27.
Extra needed = 22,727.27 − 17,801 ≈ 4,926.27 ≈ $4,926.

Answer: (d) $4,926.