Question

Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkins earned 4.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Mr. Jenkins’s account at the end of 4 years?

Answer 1

Explanation:

1250(1 + .0425*4)

Answer 2

Answer: $1462.50 See below

Explanation:

Initial deposit = $ 1,250

Interest rate = 4.25% annual simple = 0.0425

Time of investment = 4 years

simple interest formula is :

A = P * (1 + rt), where:

A = final amount

P = initial principal balance

r = annual interest rate

t = time (in years)

A = 1,250 * (1 + 4 * 0.0425)

A = 1,250 * 1.17

A = 1,462.50