$275 at 7.5% for 4 years?

I am cassandras mom very confused by the way she is being taught this. I took 275 X 7.5% X 4 = 82.50 + 275 =357.50. That's the answer I got. She has an answer of 341.62. So whos right?

Here's the way I was taught about 65 years ago.

Interest = principle * rate * time

275 * 0.075 * 4 = 82.50

She'll pay/earn $82.50 in interest.

82.50 + 275 = 357.50

I agree with your answer.

Guys....I got 82.5 I think my brain is just out of braincells ✌️💀

Linda/Cassandra -- please use the same name for your posts.

We've helped you with several problems. Now it's your turn.

I'll be glad to check your answer.

Thank You so much. I will have to ask her teacher about the way she is being taught with adding the interest each year. Thank You again.

You're very welcome, Linda.

I agree with Ms Sue's & Linda's answer of

357.50

The teacher has her adding the interest each year separately. I don't know.

To calculate the total amount of money you will have after 4 years with an initial amount of $275 at an interest rate of 7.5%, you can use the formula for compound interest.

The formula for compound interest is: A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (in this case, $275)
r = the annual interest rate (expressed as a decimal)
n = the number of times that interest is compounded per year (typically, it's compounded annually, so n = 1)
t = the number of years the money is invested for

In this case, let's plug in the given values into the formula:

A = 275(1 + 0.075/1)^(1*4)

First, divide the interest rate (7.5%) by the number of times the interest is compounded per year (1) to get the decimal form of the interest rate (0.075).

A = 275(1 + 0.075)^4

Next, raise the result to the power of the number of years (4).

A = 275(1.075)^4

Now, calculate 1.075 raised to the power of 4.

A = 275(1.31643)

Finally, multiply $275 by 1.31643 to get the total amount of money after 4 years.

A = $361.52

Therefore, after 4 years at an interest rate of 7.5%, $275 will grow to approximately $361.52.