Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkin's 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?
Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkin's 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 with simple interest, we use the formula:
A = P(1 + rt)
Where:
A = the total amount at the end of the period
P = the principal amount ($1,250)
r = the annual interest rate (4.25% or 0.0425)
t = the number of years (4)
Plugging in the values:
A = $1,250(1 + 0.0425*4)
A = $1,250(1 + 0.17)
A = $1,250(1.17)
A = $1,462.50
Therefore, the balance in Mr. Jenkins's account at the end of 4 years would be $1,462.50.