Question

After several years of working, Katy has saved $125,000. If she invests that $125,000 in a savings fund that adds 4% each

Answer 1

Answer:

  (B)  $200,000

Step-by-step explanation:

The value of the simple interest account can be found using the formula ...

  A = P(1 +rt) . . . . . where P is the principal invested at rate r for t years

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Using the given values, we find the value of the account to be ...

  A = $125,000(1 +0.04×15) = $125,000(1.6)

  A = $200,000

Katie's savings will be worth $200,000 after 15 years.