Question

You invest $1,000 in an account at 2.5% per year simple interest. How much will you have in the account after 4 years? Round your answer to the nearest whole dollar

Answer 1

1000*(1,025)=1025 $ the 1st year

After 4 years, the account will be 4* 1025=4100

Answer 2

Answer:

Amount after 4 years = 1000+100=$1100

Explanation:

To solve this, we will simply use the simple interest formula;

S.I = PRT/100

where p=principal

R=rate and T= time

S.I = simple interest

From the question

Principal=$1000

Rate = 2.5 and time=4

We can now proceed to inert the values into the equation

S.I = 1000×2.5×4 /100

Two zeros at the numerator will cancel-out the two zeros at the denominator, Hence;

S.I = 10×2.5×4

S.I =$100

Amount after 4 years = 1000+100=$1100