Question

Lauren puts $500 into a savings account for 4 years that pays 6.5%

annual simple interest. How much money in total will be in the account
at the end of that time?
A)$600
B)$390
C)$650
D)$630

Answer 1

The total amount of money in the savings account at the end of 4 years, with a principal of $500 and an annual interest rate of 6.5%, will be $630.

So, the correct answer is D.

Step-by-step explanation:

To calculate the total amount of money in the savings account at the end of 4 years, we need to use the formula for simple interest: I = P * r * t, where I is the interest, P is the principal (the initial amount of money), r is the interest rate, and t is the time in years. In this case, the principal is $500, the interest rate is 6.5%, and the time is 4 years. Plugging these values into the formula, we get:

I = 500 * 0.065 * 4 = $130

To find the total amount of money in the account at the end of 4 years, we add the interest to the principal: Total = Principal + Interest = $500 + $130 = $630

Therefore, the total amount of money in the account at the end of 4 years will be $630.

So, the correct answer is D.