Question

find the simple interest earned in asavings account that pays 5% interest if $500 is deposited for 4 years.

Answer 1

416.67

Explanation:

P = $416.67

Equation:

P = A / (1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year.

Solving our equation:

P = 500 / ( 1 + (0.05 × 4)) = 416.66666666667

P = $416.67

The principal investment required to get a total amount, principal plus interest, of $500.00 from simple interest at a rate of 5% per year for 4 years is $416.67.

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you were missing the initial amount started with so i assumed you needed the Principal. sorry if it's wrong it's been a minute since i did this also i went online and used a Simple Interest Calculator bc i am lazy