Final answer:
Using the simple interest formula, we calculate the interest earned by Paulo's $450 investment at a 4% annual rate over 6 years to be $108. The total amount in his account after 6 years would be $450 (principal) + $108 (interest) = $558.
Step-by-step explanation:
To determine how much money Paulo will have after 6 years with an account that earns 4% annual simple interest, we use the simple interest formula:
I = PRT
Where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.
Given:
- P = $450
- R = 4% or 0.04 (in decimal form)
- T = 6 years
First, calculate the interest earned:
I = 450 × 0.04 × 6
I = $108
Next, calculate the total amount in the account after 6 years:
Total amount = Principal amount + Interest
Total amount = $450 + $108
Total amount = $558
Therefore, after 6 years, Paulo will have $558 in his account.