Sally's balance after one year is $4,270.
To solve the problem, we can use the simple interest formula:
Interest = (Principal x Rate x Time)
Where:
- Principal = $4,000
- Rate = 6 ¾% = 0.0675
- Time = 1 year
Plugging these values into the formula, we get:
Interest = ($4,000 x 0.0675 x 1) = $270
So Sally earns $270 in interest over one year. To find her balance after one year, we simply add the interest to the principal:
Balance = Principal + Interest
Balance = $4,000 + $270
Balance = $4,270