Question

mr. Jenkins deposited $1,250 into an account he made no additional deposits or withdrawals mr. Jenkins and 4.25 per cent annual simple interest on the money in the account what was the balance in dollars and cents and mr. Jenkins account at the end of four years no commas

Answer 1

we have:

`A=P(1+rt)`

where:

A = final amount

P = initial principal balance

r = annual interest rate

t = time (in years)

then

`\begin{gathered} A=1250(1+(\text{0}.0425*4)) \\ A=1250(1+0.17) \\ A=1250(1.17) \\ A=1462.5 \end{gathered}`

answer: $1,462.5