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thomas invests $106 in an account that pays 6 percent simple interest. how much money will thomas have at the end of 4 years?

2 Answers

7 votes

Answer:

254 dollars.

Step-by-step explanation:

First, we multiply 106 × 0.6 = 63 dollars. Lastly, we just multiply 63 × 4 = 254.

Hope this helps.

User Kumaresan Sd
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2 votes

Final answer:

Using the simple interest formula, Thomas will have $131.44 after 4 years if he invests $106 into an account with a 6% simple interest rate.

Step-by-step explanation:

Calculating the Future Value with Simple Interest:

To calculate how much money Thomas will have at the end of 4 years with an account that pays simple interest, we'll use the formula for simple interest:

Simple Interest = Principal × Rate × Time

Where the principal is the initial amount invested ($106), the rate is 6% (or 0.06 when expressed as a decimal), and the time is the number of years the money is invested (4 years).

The calculation is as follows:

  • Simple Interest = $106 × 0.06 × 4
  • Simple Interest = $25.44

Next, we add the simple interest earned to the principal to get the total future amount:

  • Total future amount = Principal + Simple Interest
  • Total future amount = $106 + $25.44
  • Total future amount = $131.44

Therefore, after 4 years, Thomas will have $131.44 in the account.

User Evi Song
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