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What is the account balance if $1,750 is deposited at a simple annual interest rate of 5.75% for 9 months?

What is the account balance if $1,750 is deposited at a simple annual interest rate-example-1

1 Answer

7 votes

Answer:

$1,825.47

Explanation:

To find the account balance after 9 months of depositing $1,750 at a simple annual interest rate of 5.75%, we need to use the formula:

Simple Interest = P * r * t

where P is the principal amount, r is the interest rate, and t is the time period.

First, we need to convert the annual interest rate to a rate for 9 months. We can do this by dividing the annual rate by 12 and multiplying by 9:

Interest rate for 9 months = (5.75%/12) * 9 = 4.3125%

Now we can substitute the values into the formula and solve for the simple interest:

Simple Interest = $1,750 * 4.3125% * (9/12)

Simple Interest = $70.90

The simple interest is $70.90, which means the account balance after 9 months is:

Account balance = $1,750 + $70.90

Account balance = $1,820.90

Therefore, the correct answer is option 3, $1,825.47 (rounded to the nearest cent).

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