Question

if you put $500 into a savings account that pays an interest rate if 4%, how much will you have after 2 years

Answer 1

$540.80 after 2 years

Explanation:

$500 x 0.04 = $520, first year

$520 x 0.04 = $540.80, second year

Answer 2

Interest = $40

Explanation:

We know Interest = PRT.

First, plug in the numbers:

Interest = $500 * 4% * 2

Then calculate:

Interest = $500 *
`(4)/(100)` * 2

Interest = $500 *
`(8)/(100)`

Interest =
`(4000)/(100)`

Interest = $40