Question

Sofie deposits $45.00 into a new savings account. The account earns 2.5% simple interest per year. No money is added or removed from the savings account for 4 years. What is the total amount of money in her savings account at the end of the 4 years? A. $1.13 C. $49.50 B. $4.50 D. $45​

Answer 1

$49.50

Explanation:

First, let's find how much total interest was made

For every year, 2.5% interest was made

Since we're finding the total for 4 years

It will be 4 x 2.5 = 10% total interest

Now let's find 10% of 45

45 x .1 = 4.5

This means we made $4.5 in those 4 years

Now we just add it to our starting amount

45 + 4.5 = 49.5