Question

Cody has $700 in a savings account that pays 4% simple interest (l = prt). What is the amount of money Cody will have in his bank account after 2 years?

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$700\\ r=rate\to 4\%\to (4)/(100)\dotfill &0.04\\ t=years\dotfill &2 \end{cases} \\\\\\ A = 700[1+(0.04)(2)] \implies A=700(1.08)\implies A = 756`