9 Josie parents opened a college savings account that pays yearly
simple interest of 5.5%. They opened
the account with $500 and adds $50
each month to her account. How
much money is in her account at the
end of 4 years?
Record your answer and fill in the
bubbles on your answer document.
Be sure to use the correct place
value.

$1,281.00

Step-by-step explanation:

We start by calculating the value $50 added each month after the first month

= $50 × 11

= $550

Calculation:

First, converting R percent to r a decimal

r = R/100 = 5.5%/100 = 0.055 per year.

P = Principal = 500 + 550

= $1050

Calculation:

First, converting R percent to r a decimal

r = R/100 = 5.5%/100 = 0.055 per year.

Solving our equation:

A = 1050(1 + (0.055 × 4)) = 1281

A = $1,281.00

Therefore, there would be $1,281.00 after 4 years.