Question

Sam deposited $400 into a savings account that earned a 4.5% simple interest rate per year. How much did he have after 2.5 years?

Answer 1

To calculate the amount of money Sam will have after 2.5 years, we can use the formula: A = P(1 + rt). Plugging in the values, we find that Sam will have $445 after 2.5 years.

Step-by-step explanation:

To calculate the amount of money Sam will have after 2.5 years, we can use the formula: A = P(1 + rt). Where A represents the final amount, P represents the principal amount (initial deposit), r represents the interest rate, and t represents the time in years.

In this case, P = $400, r = 4.5% (or 0.045 as a decimal), and t = 2.5 years.

Plugging in these values, we have: A = $400(1 + 0.045 * 2.5). Solving this equation, we find that Sam will have $445 after 2.5 years.