Question

Madeline has $1075 that she earned over the summer from her parents and from babysitting and mowing lawns. She is saving up for Space Camp, which she will attend in 2 years. If she invests her earned money and the money from her mom and dad at 6% simple interest, how much money in dollars and cents will she have by the time Space Camp starts? She doesn't plan to withdraw any money from the account, nor to deposit additional money.

A) Madeline will have $1153.00.
B) Madeline will have $1205.50.
C) Madeline will have $1125.60.
D) Madeline will have $1100.25.

Answer 1

Madeline will have approximately $1153.00 by the time Space Camp starts.

Step-by-step explanation:

To calculate the amount of money Madeline will have by the time Space Camp starts, we need to use the formula for compound interest:

Final Amount = Principal Amount × (1 + Rate)Time

In this case, the Principal Amount is $1075, the Rate is 6% (or 0.06), and the Time is 2 years. Plugging these values into the formula, we get:

Final Amount = $1075 × (1 + 0.06)^2

Calculating this, we find that Madeline will have approximately $1153.00, so the correct answer is A) Madeline will have $1153.00.