Question

You deposit $20 in a savings account. The account earns 4% simple interest per year. What is the balance after 4 years?

Answer 1

The balance after 4 years with 4% simple interest on a $20 deposit is $23.20.

Step-by-step explanation:

To calculate the balance after 4 years with simple interest, you can use the formula:

Balance = Principal + (Principal * Interest Rate * Time)

Given that the principal (initial deposit) is $20, the interest rate is 4%, and the time is 4 years, you can substitute the values into the formula:

Balance = $20 + ($20 * 0.04 * 4)

Simplifying the equation:

Balance = $20 + $3.20

Therefore, the balance after 4 years will be $23.20.

Answer 2

$23.20

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year,

then, solving our equation

I = 20 × 0.04 × 4 = 3.2

I = $ 3.20

The simple interest accumulated

on a principal of $ 20.00

at a rate of 4% per year

for 4 years is $ 3.20.