Question

Kelly plans to put her graduation money into an account and leave it there for 4 years while she goes to college. she recieves $750 in graduation money that she deposits into an account that earns 4.25% simple interest. which of the following represents how much will be in Kellys account by the end of four years if she makes no other deposits or withdrawals into the account

A-127.50
B-1087.50
C-877.50
D-337.50

Answer 1

C) $877.50

Explanation:

Time t = 4 years

Principal, p = $750

rate, r = 4.25% = 0.0425

Amount that will be in her account in four years =

Simple interest (prt/100) + principal

750 * 4.25* 4 / 100 + 750

127.5 + 750

= $877.50