Brianna earns 4 percent simple interest on her savings. Her initial deposit was \(\$1000\). After one year, she deposited an additional \(\$1000\). These were her only two deposits. Which of the following is nearest to Brianna’s account balance after two years?
Explanation
After one year, Brianna’s initial \(\$1000\) deposit grows to \(\$ 1040(1000 \times 1.04)\). Upon her second deposit, her balance is \( \$ 1040+ \$ 1000= \$ 2040\). That sum then earns 4% interest, and the balance after the second year = \(= \$2040 \times 1.04=\$2121.60\)
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