Question

Colin received a bonus check for 2,500$. He is going to deposit the money into his bank account that receives 5.5% simple interest. What is his balance after one year?
A. $2,637.50
B. $2,373.50
C. $2,813.50
D. None of these choices

Answer 1

This is the concept of financial mathematics, the simple interest rate is given by:
S.I.=(PRT)/100
where:
P=principle=$2500
R=rate=5.5%
T=time=1 year
Hence;
S.I.=(5.5*2500.1)/100
=$137.5
Thus the total amount he had after 1 year will be:
2500+137.5
=$2,637.5