Question

Cynthia has earned $1,000 and wants to put it in a savings account that earns 5% simple interest. Assuming she makes no additional deposits or withdrawals, which represents the total value of Cynthia’s account after 48 months?

Answer 1

1,200

Explanation:

The formula for Simple Interest is I=prt p=principal r=rate expressed as decimal t=time in years

I=1,000*0.05*4

0.05 because 5% in decimal form it’s 0.05

4 because 48months dived by 12= 4 years

200=1,000*0.05*4 The interest is 200 but they are asking for the total value so then you add the amount you initiated with 1,000+200=1,200