Question

$1400 at 1.25% for 3 years what is the balance of the account

Answer 1

`\$1,452.5`

Explanation:

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=3\ years\\ P=\$1,400\\r=0.0125`

substitute in the formula above

`A=\$1,400(1+0.0125*3)`

`A=\$1,400(1.0375)=\$1,452.5`