An account with a $250 balance accrues 2% annually. If no deposits or withdrawals are made so, to take the balance to $282 requires 6.4 years and this can be determined by using the simple interest formula.
Given :
- An account with a $250 balance accrues 2% annually.
- No deposits or withdrawals are made.
- Final amount = $282
SImple interest formula can be used to determine the total number of years will it take for the balance to be $282.
The formula of simple interest is given by:
[tex]\rm A = P(1+rt)[/tex]
where A is the final amount, P is the initial principal balance, r is the annual interest rate and t is the time in years.
Now, put the known values in equation (1).
[tex]\rm 282 = 250(1+0.02t)[/tex]
[tex]\rm 282=250+5t[/tex]
32 = 5t
t = 6.4 years
So, 6.4 years will it take for the balance to be $282.
So, the graph correct graph is shown by option D).
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https://brainly.com/question/24432090
