Question

Jessica's grandparents gave her $2000 for college to put in a savings account until she starts college in four years. Her grandparents agreed to pay her an additional 7.5% simple interest on the $2000 for every year. How much extra money will her grandparents give her at the end of four years?

Answer 1

Answer:

The correct answer to the following question will be "$600".

Step-by-step explanation:

The given values are:

Principal, P = $2000

Rate of interest, r = 7.5%

After changing percentage into decimal, we get

r = 0.075

Time, t = 4

As we know,

$I = P\times r\times t$

On putting the given values in the above formula, we get

⇒   $= 2000\times 0.075\times 4$

⇒   $=600$