Cooper invests $6,500 in a savings account at his local bank. The bank pays 2.75% simple interest. Cooper does not make any additional withdrawals or deposits to this account. How much will his account be worth after 12 years?

A) $2,145
B) $2,655
C) $6,679
D) $8,645
E) $9,001

Question

Alejandrina Torres Lozano · Accepted Answer

Final Answer : D, Explanation :  The account's worth is calculated using the formula for simple interest: A = P(1 + rt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($6,500), r is the annual interest rate (2.75%, or 0.0275 as a decimal), and t is the time the money is invested for (12 years). Plugging in the values: A = $6,500(1 + 0.0275*12) = $6,500(1 + 0.33) = $6,500 * 1.33 = $8,645.

Cooper invests $6,500 in a savings account at his local bank. The bank pays 2.75% simple interest. Cooper does not make any additional withdrawals or deposits to this account. How much will his account be worth after 12 years?

A) $2,145
B) $2,655
C) $6,679
D) $8,645
E) $9,001

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Learning Objectives

Related questions

Cooper invests $6,500 in a savings account at his local bank. The bank pays 2.75% simple interest. Cooper does not make any additional withdrawals or deposits to this account. How much will his account be worth after 12 years?A) $2,145B) $2,655C) $6,679D) $8,645E) $9,001

Definitions

Learning Objectives

Learning Objectives

Related questions

Cooper invests $6,500 in a savings account at his local bank. The bank pays 2.75% simple interest. Cooper does not make any additional withdrawals or deposits to this account. How much will his account be worth after 12 years?

A) $2,145
B) $2,655
C) $6,679
D) $8,645
E) $9,001