Olivia deposits $6,952 in a savings account paying 3.72% interest. to the nearest dollar, how much money does olivia have in total after sixteen years?
a. $4,138
b. $8,568
c. $11,090
d. $29,901

to solve this problem, we are going to use the simple interest formula:

where

is the final amount after years

is the initial deposit

is the interest rate in decimal form

is the number of years

we know form our problem that olivia deposited $6,952 in a savings account, so . we also know that olivia kept the money in her account for sixteen years, so . now, to convert the interest rate to decimal form, we are going to divide the rate by 100%

let's replace the values in our formula:

and rounded to the nearest dollar:

we can conclude that the correct answer is c. $11,090

a² + b²= c²

24² + 7² = c²

c= 25