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You deposit $20 in a savings account. The account earns 4% simple interest per year. What is the balance after 4 years?

Respuesta :

Naseeem88

Answer:

$23.20

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year,

then, solving our equation

I = 20 × 0.04 × 4 = 3.2

I = $ 3.20

The simple interest accumulated

on a principal of $ 20.00

at a rate of 4% per year

for 4 years is $ 3.20.

Lanuel

Based on the calculations, your balance after four (4) years is equal to $23.2.

Given the following data:

  • Interest rate = 4% = 0.04.
  • Principal = $20.
  • Time = 4 year

To determine the balance after four (4) years:

How to calculate simple interest.

Mathematically, simple interest is given by this formula:

[tex]I = PRT[/tex]

Where:

  • S.I is the simple interest.
  • P is the principal or starting amount.
  • R is the interest rate.
  • T is the time measured in years.

Substituting the given parameters into the formula, we have;

[tex]I=20 \times 0.04 \times 4[/tex]

Simple interest = $3.2.

Balance = [tex]3.2 +20[/tex] = $23.2.

Read more on simple interest here: https://brainly.com/question/24341207

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