Question

Quincy deposits $400 in a new bank account that earns 4% simple interest per year what is the total amount in the account after 3 years? PLEASE SHOW WORK SO I CAN UNDERSTAND FULLY. Thanks.

Answer 1

Answer: $412

Explanation:

The given principal amount P = $ 400

The rate of interest r = 4%

In decimal, the rate of interest r= 0.04

Time period t= 3 years

We know that the simple interest is given by:-

`Simple\ interest=Prt\\=400*0.04*3\\=\$12`

The total amount in account after 3 years = Principal+ Simple interest

⇒ The total amount in account after 3 years = $400+$12=$412