Question

At the beginning of year 1, Bode invests $250 at an annual simple interest rate of 3%. He makes no deposits to or withdrawals from the account.Which explicit formula can be used to find the account’s balance at the beginning of year 14? What is the balance?
A.A(n) = (250)(n – 1)(0.03); $97.50 B.A(n) = 250 + (n)(0.03 • 250); $355.00 C.A(n) = 250 + (n – 1)(0.03); $250.39 D.A(n) = 250 + (n – 1)(0.03 • 250); $347.50

Answer 1

Answer:

D.A(n) = 250 + (n – 1)(0.03 • 250); $347.50

Step-by-step explanation:

we know that

The simple interest formula is equal to

$A=P(1+rt)$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=(14-1)=13\ years\\ P=\ 250\\r=0.03$

substitute in the formula above

$A=\ 250(1+0.03*13)$

$A=\ 250(1.39)=\ 347.50$