sam deposits $12,500 each year into a retirement account with a 3% simple interest
rate. if he deposits the same amount each year, how much money will he have at the
end of his fourth year?
$13,625
$26,725
$52,250
$54,500

$53750

Step-by-step explanation:

Sam deposit $12500 every year which grows at a simple interest of 3% and we have to calculate the total sum after 4 years.

If Sam deposit $x with r% simple interest then the principal will grow after 4 years to

Again, for the second year $x investment with r% simple interest will grow to  .

Now, the third year $x investment with r% simple interest will grow to  

And finally the fourth year $x investment with r% simple interest will grow to  

Therefore, the total sum becomes

=

=

So, in case of Sam the sum will be = = $53750

step-by-step explanation: