Money Alisa is investing each year = $6250
Number of years for which Alisa will be investing = 4
Annual interest rate for the investment = 6.12
We know that :
[tex]\color{hotpink}\tt \: simple \: interest \: \color{plum}= \frac{principal \times rate \times time}{100} [/tex]
In this case :
Principal = $6,250
Rate = 6.12%
Time = 4 years
[tex]\hookrightarrow \: [/tex]Principal + interest = Amount = Money Alisa would have saved at the end of 4 years
Money Alisa would have saved at the end of 4 years :
[tex] =\tt25000 + \frac{25000 \times 6.12 \times 4}{100} [/tex]
[tex] =\tt 25000 + \frac{612000}{100} [/tex]
[tex] = \tt25000 + 6120[/tex]
[tex] \color{plum}= \tt\$31120[/tex]
Therefore, money Alisa would have saved after 4 years = $31,120
