Question

4. Izzy deposits any money the team has left at the end of the season into a savings account, where it will remain until next season. This year, lzzy deposited $440 into a savings account that earns 32% simple interest. If the next season starts in 6 months, how much money will be in the account then? Explain.

Answer 1

$447.04

Explanation:

Amount (A) = Simple interest + Principal,

Simple interest = (Principal * rate * time)

A = (P * r * t) + P

Principal (P)= $440

rate (r)= 32% or 0.032 as a decimal

time (t) = duration of investment (in years) = 6 months = 1/2 a year

Next, plug in the numbers into the formula;

A = [440 *0.032*
`(1)/(2)` ] + 440

A= (440 *0.016)+440

A = ($7.04) + 440

= $447.04