Question

david deposits $3,200 into an investment account that earns 5% simple interest. he makes no additional deposits or withdrawals.
complete the sentence about the amount of interest earned and the total balance after 6 years.
after 6 years, david’s investment account will have earned __ in interest and will have a total balance of __.
answer choices for interest:
a. $960
b. $1,050
c. $1,080
d. $1,200
answer choices for total balance:
a. $4,160
b. $4,250
c. $4,280
d. $4,400

Explanation:

Step1: Recall simple interest formula

The formula for simple interest is $I = P \times r \times t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal), and $t$ is the time in years.
Given $P = 3200$, $r = 5\% = 0.05$, and $t = 6$.

Step2: Calculate the interest

Substitute the values into the formula: $I = 3200 \times 0.05 \times 6$.
First, calculate $3200 \times 0.05 = 160$.
Then, $160 \times 6 = 960$. So the interest earned is $960$.

Step3: Calculate the total balance

The total balance $A$ is the principal plus the interest, so $A = P + I$.
We know $P = 3200$ and $I = 960$, so $A = 3200 + 960 = 4160$.

Answer:

Interest: A. $960$
Total Balance: A. $\$4,160$