Question

Sophia invests $12,500 in an account that earns 4% annual simple interest. Assuming she makes no additional deposits or withdrawals, how much interest will Sophia earn after 3 years?

Answer 1

$\text{Simple interest formula:}\\\\A=P(1+rt)\\\\\text{Plug in your given values:}\\\\A=12,500(1+0.04(3))\\\\\text{Solve:}\\\\A=12,500(1+0.04(3))\\\\A=12,500(1+0.12)\\\\A=12,500(1.12)\\\\A=14,000\\\\\boxed{\ 14,000}$

Answer 2

Answer:

$15.00

Step-by-step explanation:

A= P(1 + rt)

A=12,500(1+ .04*3)