Final answer:
To calculate the total balance after 6 years on a $5000 deposit with a 4% simple interest rate, compute the interest earned by multiplying the principal with the rate and time. The interest is $1200, which leads to a total balance of $6200.
Step-by-step explanation:
To calculate the balance of a $5000 deposit after 6 years with a simple interest rate of 4%, you would use the formula for simple interest:
Simple Interest = Principal × Rate × Time
In this case, the principal (the initial amount deposited) is $5000, the rate is 4% (expressed as a decimal, 0.04), and the time is 6 years. Plugging these values into the formula gives:
Simple Interest = $5000 × 0.04 × 6
This equals $1200 in interest. The total balance after 6 years would be the original principal plus the interest earned:
Total Balance = Principal + Simple Interest
Total Balance = $5000 + $1200
This calculates to a total balance of $6200 after 6 years.