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?

Question

Quizplus · Accepted Answer

To solve this problem, we can use the formula for simple interest:

I = Prt

where I is the interest earned, P is the principal (the amount invested), r is the interest rate as a decimal, and t is the time in years.

Plugging in the given values, we get:

I = (6500)(0.0275)(12)

I = $2,145

So after 12 years, Cooper's account will be worth:

A = P + I

A = $6,500 + $2,145

A = $8,645

Therefore, the answer is D, $8,645.

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