You have $2500 that you invest at 6% simple interest. What is the balance after four years?
A) $310
B) $600
C) $3100
D) $6000

Question

Quizplus · Accepted Answer

To calculate the balance after four years, we can use the formula:
Balance = Principal x (1 + Rate x Time)
where Rate is the interest rate in decimal form, and Time is the time period in years.
Plugging in the given values, we get:
Balance = $2500 x (1 + 0.06 x 4) = $3100
Therefore, the correct answer is choice C.

You Have $2500 That You Invest at 6% Simple Interest