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?
To calculate the balance in Mr. Jenkins's account at the end of 4 years, we need to use the formula for simple interest:
Simple Interest = Principal x Rate x Time
Principal = $1,250
Rate = 4.25% = 0.0425
Time = 4 years
Simple Interest = $1,250 x 0.0425 x 4 = $212.50
Now, to find the total balance in the account after 4 years, we need to add the simple interest to the principal:
Total Balance = Principal + Simple Interest
Total Balance = $1,250 + $212.50 = $1,462.50
Therefore, the balance in Mr. Jenkins's account at the end of 4 years would be $1,462.50.