Question

Quentin deposited $1,264 into a savings account that earns 2.75% simple interest annually. What will Quentin’s account balance be at the end of 2.5 years? Assume he makes no additional deposits during that time period.

Answer 1

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Explanation:

The formula for simple interest is:

I = P * r * t

where:

I = interest earned

P = principal amount

r = interest rate (as a decimal)

t = time (in years)

In this case, we know that:

P = $1,264

r = 2.75% = 0.0275 (as a decimal)

t = 2.5 years

So, we can plug in these values and solve for I:

I = 1,264 * 0.0275 * 2.5 = $87.55

Therefore, the interest earned over 2.5 years is $87.55. To find the ending balance, we need to add the interest earned to the principal:

Ending balance = $1,264 + $87.55 = $1,351.55

So, Quentin's account balance will be $1,351.55 at the end of 2.5 years.