Question

Rena’s grandfather opened a savings account as a college fund for her. His initial deposit and the yearly simple interest rate are shown.

A college graduate is shown walking up stairs. The bottom step represents three thousand five hundred dollars. The value of the top step is unknown. The distance up the stairs is labeled four years. The simple interest rate is three point two five percent.

How much will Rena have in this account after 4 years?

Enter the correct answer in the box.

Answer 1

Total amount (A) = $3,955

Explanation:

Given:

Initial deposit (P) = $3,500

Rate of interest (r) = 3.25%

Number of years (t) = 4

Find:

Total amount (A)

Computation:

Simple interest = (p)(r)(t)

Simple interest = (3,500)(3.25)(4)

Simple Interest = $455

Total amount (A) = Initial deposit (P) + Simple Interest

Total amount (A) = 3,500 + 455

Total amount (A) = $3,955