Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkins earned 4.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Mr. Jenkins's account at the end of 4 years?

Question

Anahi Bond

Mathematics

21 January, 01:38

Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkins earned 4.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Mr. Jenkins's account at the end of 4 years?

+5

Answers (2)

Know the Answer?

Reuben Willis · Answer 1

Step-by-step explanation:

1250 (1 +.0425*4)

Jameson Wilkerson · Answer 2

Answer: $1462.50 See below

Step-by-step explanation:

Initial deposit = $ 1,250

Interest rate = 4.25% annual simple = 0.0425

Time of investment = 4 years

simple interest formula is:

A = P * (1 + rt), where:

A = final amount

P = initial principal balance

r = annual interest rate

t = time (in years)

A = 1,250 * (1 + 4 * 0.0425)

A = 1,250 * 1.17

A = 1,462.50