Question

HELP!!

When Janette was 5 years old, her grandmother deposited $2500 into a savings account for her. The account pays a simple annual interest rate of 4%. What will the balance be when Janette turns 15 years old?

A. $40
B. $1000
C. $2540
D. $3500

Answer 1

D. $3,500
$2,500 x 0.04 x 10 = $1,000+ $ 2,500 = $ 3,500

Answer 2

When Janette turns 15 years old, the balance will be $3500. The correct answer is the D option.

Explanation:

It is about a simple interest problem.

The first thing to know is that balance is the total amount of money available in a bank account, so you must find the money Janette will have when she turns 15 years old.

If her grandmother deposited $2500 when Janette was 5 years old, the money will have been for 10 years in the bank by the time she is 15 years old.

The simple interest formula is:
`x_(final)=x_(initial)+x_(initial)\cdot r \cdot t`, where
`x_(final)` is the final amount of money (initial amount plus interests),
`x_(initial)` is the initial amount of money,
`r` is the interest rate and
`t` is the time period.

The idea is to find
`x_(final)`, so you must replace the other variables with the information that the problem gives. Keep in mind that 4% is 0.04.

`x_(final)=x_(initial)+x_(initial)\cdot r \cdot t`

`x_(final)=2500+2500\cdot (0.04) \cdot (10)`

`x_(final)=3500`

Thus, when Janette turns 15 years old, the balance will be $3500. The correct answer is the D option.