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Támara opened a new savings account with 1750. the account earns 11% simple interest annually. if a=0.11t 1750 represents the amount of money in tamara’s account after t years,what will be the balance of tamara’s account after 5 years?

a) $2087.50
b) $1928.50
c) $1852.50
d) $1802.50

User Pdubbs
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1 Answer

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Final answer:

Using the simple interest formula, the balance of Tamara's account after 5 years with an initial deposit of $1750 at an annual interest rate of 11% is calculated to be $2712.50. However, this result does not match any of the options provided, suggesting an error in the question or in the interpreted equation.

Step-by-step explanation:

To calculate the balance of Tamara's savings account after 5 years with simple interest, you can use the formula for simple interest: (A = P(1 + rt)), where:

  • A is the amount of money accumulated after n years, including interest.
  • P is the principal amount (the initial amount of money).
  • r is the annual interest rate (in decimal).
  • t is the time the money is invested for, in years.

In this case, Tamara's initial deposit P is $1750, the annual interest rate r is 11% or 0.11, and the time t is 5 years.

Plugging these values into the formula gives us:

(A = 1750 * (1 + 0.11 * 5))

(A = 1750 * (1 + 0.55))

(A = 1750 * 1.55)

(A = $2712.50)

However, since the given choices do not include this result, it's possible that there might be a mistake in the equation presented. If we consider the equation a = 0.11t * 1750, which seems to suggest a different calculation method possibly omitting the initial principal, we can calculate the interest earned and add it to the principal to find the correct balance:

Interest earned after 5 years: (Interest = 0.11 * 5 * 1750)

Interest = ($962.50)

Then we add the interest to the initial deposit:

(Balance = Principal + Interest)

(Balance = $1750 + $962.50)

(Balance = $2712.50)

Thus, the corrected equation provides the balance after 5 years, which is $2712.50, not one of the options provided. Therefore, there might be an error in the initial question or the provided equation.

User Phydeauxman
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