Question

Stacy is making an investment in the amount of $10,000. The investment has a 4.5% simple interest rate. What will the total amount of the investment be worth after 3 years?

a) $10,450
b) $10,675
c) $10,350
d) $10,225

Answer 1

The total amount of Stacy's $10,000 investment at a 4.5% simple interest rate after 3 years will be $11,350, calculated using the formula for simple interest.

Step-by-step explanation:

Stacy is making an investment of $10,000 with a 4.5% simple interest rate. To calculate the total amount of the investment after 3 years, you use the formula for simple interest: total amount = principal + (principal × interest rate × number of years). In this case:

Total amount = $10,000 + ($10,000 × 0.045 × 3)

Total amount = $10,000 + ($10,000 × 0.135)

Total amount = $10,000 + $1,350

Total amount = $11,350

So, the total amount of the investment after 3 years would be $11,350, which means the correct answer is (c) $11,350.