Question

Rena's grandfather opened a savings account as a college fund for her. His initial deposit and the yearly simple interest rate are shown. A college graduate is shown walking up stairs. The bottom step represents three thousand five hundred dollars. The value of the top step is unknown. The distance up the stairs is labeled four years. The simple interest rate is three point two five percent. How much will Rena have in this account after 4 years? Enter the correct answer in the box.

Answer 1

$3,955

Explanation:

Given that:

Initial deposit = $3500

Simple rate of interest = $3.25%

Number of years = 4

Simple interest = (principal * rate * time)

Principal = Initial deposit = $3500

Interest = $3500 * 3.25% * 4

Simple Interest = $455

Amount that will be in account after 4 years :

$3500 + $455 =$3955