Cooper invests $6,500 in a savings account at his local bank. The bank pays 2.75% simple interest. Cooper does not make any additional withdrawals or deposits to this account. How much will his account be worth after 12 years?
A) $2,145
B) $2,655
C) $6,679
D) $8,645
E) $9,001

Question

Quizplus · Accepted Answer

The account's worth is 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 ($6,500), r is the annual interest rate (2.75%, or 0.0275 as a decimal), and t is the time the money is invested for (12 years). Plugging in the values: A = $6,500(1 + 0.0275*12) = $6,500(1 + 0.33) = $6,500 * 1.33 = $8,645.

Cooper Invests $6,500 in a Savings Account at His Local