Question

Deshaun deposits $4,000 into an account that pays simple interest at an annual rate of 6% . He does not make any more deposits. He makes no withdrawals until the end of 2 years when he withdraws all the money.

Answer 1

After 2 years, Deshaun will have earned $4,000 * 6% = $240 in interest.

The total amount of money in the account at the end of 2 years will be $4,000 + $240 = $4,240. This is the amount Deshaun will withdraw.