Question

Hello I'm having troubles on this problem please help thank you

Answer 1

To answer this question we will use the following formula for simple interest:

`\begin{gathered} I=A_0rt, \\ where\text{ I is the interest after t years at an interest rate of r }(as\text{ a decimal number}),\text{ and } \\ A_0\text{ is the initial amount.} \end{gathered}`

(a) Substituting A₀=2000, t=4, and r=0.04 we get:

`\begin{gathered} I=2000*0.04*4 \\ =320. \end{gathered}`

(b) Then, Nicole has to pay a total amount of:

`2000+320=2320.`

Answer:

(a) $320.

(b) $2320.