TheRob wrote:
Donald plans to invest x dollars in a savings account that pays interest at an annual rate of 8% compounded quarterly. Approximately what amount is the minimum that Donald will need to invest to earn over $100 in interest within 6 months?
A. 1500
B. 1750
C. 2000
D. 2500
E. 3000
We can solve this using Answers.
if the annual rate is 8% then for 6 month it is 8/2=4%
DOnald need to earn $100 interest then
A) 1500- 4% of 1500= $60<100
B0 1750- 4% of 1750=$70<100
c) 2000- 4% 0f 2000= $80<100
d) 2500- 4% of 2000= $100 so answer is (D)
Hope this helps..