Question

If Bowden's account has a principal of $500 and a simple interest rate of 3.3%, how much money will be in the account after four years, assuming no withdrawals or additions?

A) $530
B) $560
C) $580
D) $590

Answer 1

After four years, with a principal of $500 at a 3.3% simple interest rate, Bowden's account will have approximately $566, which means the closest answer is B) $560.

Step-by-step explanation:

To determine how much money Bowden's account will have after four years with a simple interest rate of 3.3% on a principal of $500, we use the formula for simple interest: Interest = Principal × rate × time. So, Bowden's interest for four years would be $500 × 0.033 × 4 = $66. The total future amount in the account would be the principal plus the interest earned, equaling $500 + $66 = $566.

Therefore, the correct answer is B) $560 (since the actual amount falls between the answer choices provided and answer choice B is the closest).