Question

Michelle deposited $3,400 into an account. she made no additional withdrawals or deposits. michelle earned 1.95% annual simple interest on the money in the account. what was the total balance in her account at the end of 2.5 years? question 6 options: $165.75 $356.57 $3565.75 $1,657.50

Answer 1

$~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 3400\\ r=rate\to 1.95\%\to \frac{1.95}{100}\dotfill &0.0195\\ t=years\dotfill &2.5 \end{cases} \\\\\\ A=3400[1+(0.0195)(2.5)]\implies A=3400(1.04875)\implies A=3565.75$