Final answer:
To find Henry's total balance after 6 years with an annual interest rate of 2.5%, we apply the compound interest formula A = P(1 + r/n)^(nt), resulting in an amount of approximately $1,739.53. The closest answer choice to this calculated amount is option C, $1,743.75.
Step-by-step explanation:
Henry is looking to find out the total balance in his bank account after depositing $1,500 at an annual interest rate of 2.5% for 6 years. Since the question does not specify, we will assume the interest is compounded annually. We can use the formula for compound interest, which is A = P(1 + r/n)^(nt), 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 (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.
In Henry's case, P is $1,500, r is 2.5% or 0.025, n is 1 (since it's compounded annually), and t is 6 years. The formula becomes:
A = $1,500(1 + 0.025/1)^(1*6)
A = $1,500(1 + 0.025)^6
A = $1,500(1.025)^6
A = $1,500(1.159688)
A = $1,739.53 (rounded to two decimal places)
Therefore, the closest answer to Henry's final total balance after 6 years would be option C, which is $1,743.75.