Question

Mr. Harold invested $1,600 in an account

that paid him 3.25% simple interest. What
will be the balance of his account after
32 years, including interest?
A) $1,664.00
C) $16,640.00
B) $1,536.00
D) $3,264.00

Answer 1

Simple interest can be found using the formula:
I = prt
(Where p = money invested
r = rate of interest
t = time invested in years)

So in this problem, p = 1600, r = 3.25% or .0325 as a decimal, and t = 32.
Now just multiply everything, making sure that 3.25% is a decimal.
1600 x .0325 x 32 = 1664
So the answer is A) $1664.00