Multiple choice

John is planning to save for his daughter's college education. He decides to invest $10,000 in a fixed deposit account that offers an annual simple interest rate of 8.5%. He plans to leave the money in the account for 6 years. What will be the total amount in the account after 6 years?

  1. $22,100
  2. $18,100
  3. $16,100
  4. $15,100
  5. $14,500
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest = (Principal * Rate * Time) / 100 = (10000 * 8.5 * 6) / 100 = 100 * 51 = 5100. Total amount = 10000 + 5100 = 15100.

AI explanation

Using the simple interest formula, we calculate the interest as Principal multiplied by Rate multiplied by Time divided by 100, which gives 10000 x 8.5 x 6 / 100 = 5100. The total amount is the sum of the principal and the interest, so 10000 + 5100 = 15100.

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