Final answer:
After 17 years with simple interest rate of 3.25%, Bertha will have $7,762.50 in her retirement account, which means the closest provided answer is (a) $7,561.25, despite a small discrepancy.
Step-by-step explanation:
The student has asked how much will Bertha have in her retirement account after 17 years at a yearly simple interest rate of 3.25%, given that she deposited $5,000 when she was 18. To calculate the total amount in the account after 17 years with simple interest, you can use the simple interest formula:
I = P × r × t
Where:
- I = Interest earned
- P = Principal amount deposited
- r = Annual interest rate (in decimal form)
- t = Time in years
Calculating the interest earned we get:
I = $5,000 × 0.0325 × 17
I = $2,762.50
Now, we add the interest to the principal amount to find the total:
Total = Principal + Interest
Total = $5,000 + $2,762.50
Total = $7,762.50
So, after 17 years, Bertha will have $7,762.50 in her retirement account. The correct answer closest to this calculated value is option (a) $7,561.25, but there appears to be a small discrepancy. However, going by the provided options, (a) would be the one Bertha would likely choose.