Question

Drew deposits 2,000 into an account that earns 4% simple annual interest how much money will drew have after five years

Answer 1

in 5 years your balance should be 3,000

Answer 2

Answer: The amount of money Drew will have after five years is $2400.

Explanation:

As per given , we have

Principal value = $2,000

Rate of interest = 4%

In decimal , the rate of interest = 0.04

Time = 5 years

Formula to find the simple interest :

`I=Prt`

, where P= Principal value.

r= rate of interest ( decimal )

t = Time

Simple interest earned by Drew in 5 years=
`(2000)*(0.04)*(5)= \$400`

Amount of money Drew will have after five years = P+I

= $2000+$400 = $2400

Hence, the amount of money Drew will have after five years is $2400.