Question

answers to two decimal places, show both decimal places (5.06). Sally deposits $4,000 in a certificate of deposit that pays 2.12% simple interest. What is her balance after one year?​

Answer 1

The formula for calculating simple interest is:

I = P * r * t

where I is the interest earned, P is the principal (the amount deposited), r is the interest rate, and t is the time period (in years).

In this case, we have:

P = $4,000

r = 2.12% = 0.0212 (expressed as a decimal)

t = 1 year

So, the interest earned is:

I = $4,000 * 0.0212 * 1 = $84.80

To find the balance after one year, we simply add the interest to the principal:

Balance = $4,000 + $84.80 = $4,084.80

Therefore, Sally's balance after one year is $4,084.80.

Explanation: