Question

Vicky opened up a Simple savings account that pays a 1.19% interest rate per year. She initially deposits $250.00. How much will she have in total in her account after 4 years?

Option 1: $1,190.00
Option 2: $11.90
Option 3: $1,440.00
Option 4: $261.90
Option 5: $251.90

Answer 1

Using the simple interest formula, Vicky's initial deposit of $250 at a 1.19% interest rate for 4 years will accrue $11.90 in interest, resulting in a total of $261.90 in her account after 4 years. Option 4:

Step-by-step explanation:

The student's question is related to calculating the total amount in a savings account after 4 years with an annual simple interest rate of 1.19%. To determine this, we can use the simple interest formula, which is Principal x Interest Rate x Time. For Vicky's initial deposit of $250.00 at a 1.19% interest rate for 4 years, the calculation would be $250.00 × 0.0119 × 4.

Let's perform the calculation:
$250.00 × 0.0119 × 4 = $11.90

Adding the interest earned to the original deposit gives us:
$250.00 + $11.90 = $261.90

Therefore, after 4 years, Vicky will have a total of $261.90 in her account.