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Discipline: Economics

Question topic: Interest

Source: Originais Teachy

Level of difficulty: Medium

(Originais Teachy 2023) - Question Medium of Economics

Sarah is a 9th-grade student who has been saving money from her part-time job to buy a new bicycle. She currently has $500 and the bicycle she wants costs $600. Her bank offers a savings account with an annual interest rate of 5%. Considering that she will not make any additional deposits, how long will it take for her savings to reach the price of the bicycle?
a.
It will take approximately 4 years for Sarah's savings to reach the price of the bicycle, considering that she will not make any additional deposits.
b.
It will take approximately 3 years for Sarah's savings to reach the price of the bicycle, considering that she will not make any additional deposits.
c.
It will take approximately 5 years for Sarah's savings to reach the price of the bicycle, considering that she will not make any additional deposits.
d.
It will take approximately 2 years for Sarah's savings to reach the price of the bicycle, considering that she will not make any additional deposits.
e.
It will take approximately 6 years for Sarah's savings to reach the price of the bicycle, considering that she will not make any additional deposits.

Answer:

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Curabitur id consequat justo. Cras pellentesque urna ante, eget gravida quam pretium ut. Praesent aliquam nibh faucibus ligula placerat, eget pulvinar velit gravida. Nam sollicitudin pretium elit a feugiat. Vestibulum pharetra, sem quis tempor volutpat, magna diam tincidunt enim, in ullamcorper tellus nibh vitae turpis. In egestas convallis ultrices.

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