determine whether the following statement makes sense or does not make sense, and explain your reasoning…

determine whether the following statement makes sense or does not make sense, and explain your reasoning. after depositing $1500 in an account at a rate of 4%, my balance at the end of the first year was $(1500)(0.04). select the correct choices that complete the sentence below. the statement because if $1500 is deposited at a rate of 4%, then by the end of the first year the calculated is $(1500)(0.04). and the at the end of the first year will be $1500+(1500)(0.04).

determine whether the following statement makes sense or does not make sense, and explain your reasoning. after depositing $1500 in an account at a rate of 4%, my balance at the end of the first year was $(1500)(0.04). select the correct choices that complete the sentence below. the statement because if $1500 is deposited at a rate of 4%, then by the end of the first year the calculated is $(1500)(0.04). and the at the end of the first year will be $1500+(1500)(0.04).

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. Here, $P=$1500$, $r = 0.04$, and $t = 1$.

Step2: Calculate the interest

$I=1500\times0.04\times1=$60$.

Step3: Calculate the end - of - year balance

The balance $A$ at the end of the year is the sum of the principal and the interest, $A=P + I=1500+60=$1560$. The statement in the problem says the balance is $(1500)(0.04)=$60$, which is only the interest, not the total balance.

Answer:

The statement does not make sense because when $$1500$ is deposited at a rate of $4%$ for one year, the interest earned is $(1500)(0.04)=$60$, but the balance at the end of the first year is $1500+(1500)(0.04)=$1560$, not $(1500)(0.04)$.