Answer: Option 'B' is correct.
Step-by-step explanation:
Since we have given that
Amount Josh earn each summer = $2700
Rate of simple interest = 4.5%
According to question, he deposits the same amount each year.
First summer, he deposited = $2700
In Second summer, he deposited = $2700×2= $5400
In Third summer, he deposited = $2700 × 3=$8100
At the end of his third summer, his money becomes,
[tex]\text{Simple Interest}=\frac{P\times R\times T}{100}\\\\\text{Simple Interest}=\frac{8100\times 4.5\times 1}{100}\\\\\text{Simple Interest}=\$364.5[/tex]
As we know the formula for "Amount" that it becomes at the end of his third summer:
[tex]Amount=P+S.I\\\\Amount=\$8100+\$364.5\\\\Amount=\$8464.5[/tex]
Hence, Option 'B' is correct.
