Question

Robin saves $500 at a yearly simple interest rate of 4%. What is the total amount of

money she has after 20 years?

Answer 1

$900

Explanation:

The formula for simple interest is I = PRT where I is the interest earned, P is the principal/amount deposited or borrowed, R = rate as a decimal, and T = time in years

I = PRT

I = (500)(0.04)(20)

I = 400

Add the interest to the principal, and she will have $900 in 20 years.

Please let me know if you have questions about this.