Question

Diego put $15,000 into a savings account 6 years ago.

- The account earned 3.25% simple annual interest.
He made no additional deposits or withdrawals.
Based on this information, what is the balance in dollars and cents in Diego's savings account at the end of these 6 year
$18.173.21
B $2,925.00
$17,925.00
D $3,173.21

Answer 1

Answer: The answer is option C: $17,925.00.

Step-by-step explanation: Using the simple interest formula:

I = Prt

where I is the interest, P is the principal, r is the interest rate, and t is the time in years.

We can find the interest earned over the 6 years:

I = P * r * t = $15,000 * 0.0325 * 6 = $2,925

Adding the interest to the principal, we get the balance at the end of the 6 years:

Balance = Principal + Interest = $15,000 + $2,925 = $17,925

Therefore, the answer is option C: $17,925.00.