Mr. Alvarez's simple interest savings account currently has a balance of $12,500. He earns 6% Interest annually. Calculate his balance for one year

If no additional deposits are made,

A $13,250.00

B $12,506.00

C $13,500

D $12,560.00

Question

Jayda Trevino

Business

14 January, 10:54

Mr. Alvarez's simple interest savings account currently has a balance of $12,500. He earns 6% Interest annually. Calculate his balance for one year

If no additional deposits are made,

A $13,250.00

B $12,506.00

C $13,500

D $12,560.00

+3

Answers (1)

Know the Answer?

Harrison · Answer 1

A $13,250.00

Explanation:

The formula for calculating balance at the end of a period using simple interest is as below.

A = P (1+rt)

A = final amount

P = principal amount which is $12500

r = interest rate 6% or 0.06

t = time which is 1 year

A = $12,500 (1+0.06 x 1)

A = $12500 x1.06 x 1

=$12500 x 1.06

=$13,250

Mr. Alvarez's simple interest savings account currently has a balance of $12,500. He earns 6% Interest annually. Calculate his balance for one yearIf no additional deposits are made,A $13,250.00B $12,506.00C $13,500D $12,560.00

Mr. Alvarez's simple interest savings account currently has a balance of $12,500. He earns 6% Interest annually. Calculate his balance for one year

If no additional deposits are made,

A $13,250.00

B $12,506.00

C $13,500

D $12,560.00