Question

A new bank customer with ​$4,000 wants to open a money market account. The bank is offering a simple interest rate of 1.4​%. a. How much interest will the customer earn in 20 ​years? b. What will the account balance be after 20 ​years? a. The customer will earn ​$ in interest.

Answer 1

A = $1,120 B = $5120

Explanation:

1.4/100 = 0.014

0.014 x 4000 = 56

1.4% interest on the $4,000 is $56.

56 x 20 (years) = 1,120

A= $1,120

To get B simply add 1,120 to 4000.

1,120 + 4000 = 5120

B = 5120.