Question

to be able to buy a new computer, Rita decides to save for 4 years. She opens a savings account with $800. the account pays simple interest at an annual rate of 4%. She doesn't make any more deposits. Answer the following questions. If necessary, refer to the list of financial formulas. (a) How much total interest will Rita earn? (b) What will the total amount in the account be (including interest)?​

Answer 1

Answer: $128 and $928

Explanation:

Hi! So, first let's find out how much interest Rita gets per year. To find this multiply 0.04 (decimal form of 4 per cent) by 800. We get 32. Rita gets $32 dollars per year in interest. She saves for 4 years, so multiply 32 by 4. We get 128. Rita gets $128 dollars total in interest. Now add 128 + 800 to get 928. Rita's total amount in the account is $928 dollars. All the best!!