Question

Find the balance in Grace's account after 2 years for a principal of $2500 if the bank pays simple interest at a rate of 5.25%. A.)29762.50 B.)2862.50 C.)2762.50 D.)2772.50

Answer 1

Answer: C.)2,762.50

Explanation:

The bank is paying a simple interest of 5.25%.

After 2 years, Grace's account will have:

Simple interest:

= Principal * ( 1 + rate * years)

= 2,500 * ( 1 + 5.25% * 2)

= $‭2,762.50‬