Question

Lucia opened a savings account and deposited 500.00 as principal the account earns 12%interest what is the balance after 4 years

Answer 1

The balance after 4 years will be the amount.

Amount = Principal + Interest

Given

principal = 500.00

Rate = 12%

time = 4years

First we need to get the interest;

Interest = PRT/100

Interest = 500*12*4/100

Interest = 5*12*4

Interest = 240.00

Get the balance after 4years

Amount = 500.00 + 240.00

Amount = 740.00

Hence the balance after 4 years is 740.00