Question

1. peter makes an initial deposit of $2,500 into a savings account. peter will not make any additional deposits or withdrawals. the account earns 1% simple interest. complete the statements about the savings account by circling the correct answer in each box. at the end of 1 year, peter will have $25 / $2,525 in his savings account. at the end of 2 years, peter will have $50 / $2,550 in his savings account.

Explanation:

Step1: Calculate 1-year simple interest

Simple interest formula: $I = P \times r \times t$
Here, $P = 2500$, $r = 0.01$, $t = 1$
$I = 2500 \times 0.01 \times 1 = 25$
Total amount: $2500 + 25 = 2525$

Step2: Calculate 2-year simple interest

Use $P = 2500$, $r = 0.01$, $t = 2$
$I = 2500 \times 0.01 \times 2 = 50$
Total amount: $2500 + 50 = 2550$

Answer:

At the end of 1 year, Peter will have $\boldsymbol{\$2,525}$ in his savings account.
At the end of 2 years, Peter will have $\boldsymbol{\$2,550}$ in his savings account.