If you were able to invest $2,500 at a rate of 6.40% for six months,how much money would you have at the end of that period?
A)$2,349.62
B)$2,423.65
C)$2,578.76
D)$2,660.00

Question

Quizplus · Accepted Answer

The investment grows with interest, which can be calculated using the formula for simple interest: $A = P(1 + rt)$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), and $t$ is the time the money is invested for in years. For a 6-month period, $t = 0.5$ years. Plugging the values into the formula gives $A = 2500(1 + 0.064 \times 0.5) = 2500(1 + 0.032) = 2500 \times 1.032 = 2580$. The closest answer to this calculation is $2,578.76.

If You Were Able to Invest $2,500 at a Rate