Question

Vance invests $15,000 in an account that pays 3 1/4% simple interest for 72 months. Assuming Vance doesn't make any other deposits or withdrawals, how much will bei n his account after 72 months?

(pick an answer)
$35,100


$2,925


$29,250


$17,925

Answer 1

$23,250

To calculate the total amount in the account after 72 months, we use the formula for simple interest:

Total Amount = Principal + (Principal x Rate x Time)

Total Amount = $15,000 + ($15,000 x 0.0325 x 72)

Total Amount = $15,000 + ($15,000 x 2.325)

Total Amount = $15,000 + $34,875

Total Amount = $49,875

Therefore, the total amount in Vance's account after 72 months will be $49,875.