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26 votes
26 votes
Doug has $100,000 in a savings account that earns 13% interest per year. The interest is

not compounded. How much interest will he earn in 4 years?




PLEASE HELP AGAIN!!!!

User Vsasv
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2 Answers

13 votes
13 votes

Answer: He will earn about $3,756.66

Explanation:

User Woran
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18 votes
18 votes

Answer:

If Doug has $100,000 in a savings account that earns 13% interest per year and the interest is not compounded, then after four years he will earn $52,000 in interest. This is because 13% of $100,000 is $13,000, and since the interest is not compounded, this amount will remain constant for each year. Therefore, after four years Doug will earn a total of $13,000 + $13,000 + $13,000 + $13,000 = $52,000 in interest.

In general, if a savings account earns x% interest per year and the initial amount in the account is y dollars, then after n years the account will earn n * (x/100) * y dollars in interest. For example, if the interest rate is 13% and the initial amount is $100,000, then after four years the account will earn 4 * (13/100) * $100,000 = $52,000 in interest.

Explanation:

User Fghf
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