Question

Darren invests $750 in an account that pays 2.5% simple interest for 40 weeks. How much will his investment be worth at the end of this time?

Answer 1

$764.42

Explanation:

The account balance is given by the formula ...

A = P(1 +rt)

where P is the principal invested, r is the annual rate, and t is the number of years. Here, we assume 52 weeks in the year, since the time period is given in weeks.

Filling in the numbers, we have ...

A = $750(1 +0.025(40/52)) = $764.42

Darren's investment will be worth $764.42 at the end of 40 weeks.