Final answer:
Sally's CD will grow with simple interest to a balance of $4,084.80 after one year when $4,000 is deposited at an annual simple interest rate of 2.12%.
Step-by-step explanation:
To calculate the balance of Sally's certificate of deposit (CD) after one year with simple interest, you can use the simple interest formula: Interest = Principal × Rate × Time. In Sally's case, the principal amount is $4,000, the annual interest rate is 2.12%, and the time is 1 year.
Now let's calculate the interest earned after one year:
• Principal (P) = $4,000
• Rate (R) = 2.12% or 0.0212
• Time (T) = 1 year
The simple interest (I) is calculated as:
I = P × R × T
I = $4,000 × 0.0212 × 1
I = $84.80
To find the total balance, add the interest to the principal:
• Total Balance = Principal + Interest
• Total Balance = $4,000 + $84.80
• Total Balance = $4,084.80
Therefore, Sally's balance after 1 year will be $4,084.80.