Question

Braxton puts $1,275 into a savings account that earns 3% simple interest per year. How much total money will be in his account after 5 years?

A) $191.25
B) $1,466.25
C) $19,125.00
D) $20,400.00

Answer 1

the answer is 1,466.25

Answer 2

The answer would be B) 1,466.25

Explanation:

The formula we'll use for this is the simple interest formula, or:

I= P x r x t

Where:

P is the principal amount, $1275.00.

r is the interest rate, 3% per year, or in decimal form, 3/100=0.03.

t is the time involved, 5....year(s) time periods.

So, t is 5....year time periods.

To find the simple interest, we multiply 1275 × 0.03 × 5 to get that:

The interest is: $191.25

Usually now, the interest is added onto the principal to figure some new amount after 5 year(s),

or 1275.00 + 191.25 = 1466.25.