1
QuizMultiple Choice

Unit Test — Unit test

Question 1 • OCPS -2102371-Personal Finance and Money Management

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?

Answer
A
$6,335
B
$3,715
C
$1,409
D
$4,926

Explanation

For simple interest, use I = Prt. June needs an initial investment of $6,500 ÷ (0.026 × 11) ≈ $22,727 to earn $6,500. Subtract the $17,801 she already invested: $22,727 − $17,801 ≈ $4,926. The correct choice is $4,926.

AI-written and checked against the verified answer.

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