a business owner invested $10,500 into an account that pays 1.2% annual simple interest. no additional…

a business owner invested $10,500 into an account that pays 1.2% annual simple interest. no additional deposits or withdrawals will be made. which amount is closest to the interest earned on the account at the end of 4 years? (a) $504 (b) $11,004 (c) $126 (d) $10,626

a business owner invested $10,500 into an account that pays 1.2% annual simple interest. no additional deposits or withdrawals will be made. which amount is closest to the interest earned on the account at the end of 4 years? (a) $504 (b) $11,004 (c) $126 (d) $10,626

Answer

Explanation:

Step1: Identificar la fórmula de interés simple

$I = Prt$, donde $P$ es el principal, $r$ es la tasa de interés anual y $t$ es el tiempo en años.

Step2: Asignar valores

$P=$10500$, $r = 1.2%=0.012$, $t = 4$ años.

Step3: Calcular el interés

$I=10500\times0.012\times4$ $I = 10500\times0.048$ $I = 504$

Answer:

A. $504