Alexa put $850 into a savings account that earns 0.75% annual simple interest.

If Alexa does not make any deposits or withdrawals for 18 months, how much money will be in her account?

A. $859.56

B. $945.63

C. $964.75

D. $977.50

To calculate how much money Alexa will have in her account after 18 months, we'll use the formula for simple interest:

\[
A = P(1 + rt)
\]

Where:
- $ A $ is the total amount after interest.
- $ P $ is the principal amount (initial deposit).
- $ r $ is the annual interest rate (in decimal form).
- $ t $ is the time the money is invested for, in years.

Given:
- $ P = 850 $
- $ r = 0.75\% = 0.0075 $
- $ t = 18 \, \text{months} = 1.5 \, \text{years} $

Now, substitute the values into the formula:

\[
A = 850 \times (1 + 0.0075 \times 1.5)
\]
\[
A = 850 \times (1 + 0.01125)
\]
\[
A = 850 \times 1.01125
\]
\[
A = 859.56
\]

So, Alexa will have **$859.56** in her account after 18 months.

The correct answer is **A. $859.56**.

Would you like more details or have any questions?

Here are 5 related questions:
1. How would the result change if the interest rate was compounded annually instead of simple interest?
2. What if Alexa invested the same amount for 5 years with the same interest rate?
3. How does compound interest differ from simple interest in terms of growth over time?
4. How would the total amount change if the interest rate was 1.5% instead of 0.75%?
5. How much interest would Alexa earn after 18 months?

**Tip:** Simple interest grows linearly, while compound interest grows exponentially over time!

Alexa put $850 into a savings account that earns 0.75% annual simple interest. If Alexa does not make any deposits or withdrawals for 18 months, how much money will be in her account?
A. $859.56
B. $945.63
C. $964.75
D. $977.50

Learn how to calculate the final amount in a savings account earning 0.75% annual simple interest after 18 months. Starting with a principal of $850, this problem demonstrates how to apply the simple interest formula to find the total amount. Suitable for Grades 9-11.

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