Final Answer:
Martha will earn $4,000 in interest in 1 year. Therefore, option A) $4,000 is the correct choice.
Step-by-step explanation:
The formula to calculate simple interest is represented as I = P × r × t, where I represents the interest earned, P is the principal amount, r is the interest rate, and t is the time period.
Given that Martha has $100,000 in a savings account with an interest rate of 4% per year and the interest is not compounded, we apply the formula. Substituting the values: I = $100,000 × 0.04 × 1 (as the time period is 1 year), we get I = $4,000. This implies that after 1 year, Martha will earn $4,000 in interest on her savings account.
Therefore, with a principal amount of $100,000 and an interest rate of 4% per year, not compounded, Martha will accrue $4,000 in interest in 1 year. This calculation demonstrates the application of the simple interest formula to determine the interest earned over a specified time period based on the principal amount and interest rate. OPTION A