Frank invests $2,500 in an account that pays 6% simple interest. How much money will he have at the end of four years?

A) $2,650
B) $3,100
C) $3,156
D) $3,163
E) $10,600

Simple Interest

Simple interest is a method of calculating interest where the interest charge is computed only on the original principal, and not on the interest accrued over time.

Account

A record or statement that reflects the financial transactions and their effect on an asset, liability, equity, revenue, or expense.