Colin received a bonus check for 2,500$. He is going to deposit the money into his bank account that receives 5.5% simple interest. What is his balance after one year? A. $2,637.50 B. $2,373.50 C. $2,813.50 D. None of these choices
This is the concept of financial mathematics, the simple interest rate is given by: S.I.=(PRT)/100 where: P=principle=$2500 R=rate=5.5% T=time=1 year Hence; S.I.=(5.5*2500.1)/100 =$137.5 Thus the total amount he had after 1 year will be: 2500+137.5 =$2,637.5
