Question

Jada invests $590 in a money market account her account pays 7% simple interest if she does not add or withdraw any money how much interest will jadas account earn after 4 years of simple interest. show your work

Answer 1

Answer: 183.37?

Step by step:
This can be partially solved with the function 590(1.07)^4.
Since this is exponential growth, you would use the formula is a(1+r)^x where “a” is the starting amount, “r” is the rate, and “x” is the time.
The formula leaves you with about 773.37. Then subtract 590.
183.37 gained with interest.

To be frank, I’m not 100% confident with this answer as the exponential growth formula gave an exact answer of 773.3696459, but it should at least be very close.

Answer 2

$169.92

Explanation:

Multiply Yearly Interest By How Many Years

7.2 * 4 = 28.8

Take 28.8 Percent Of Amount Of Money In The Account

28.8 percent of 590 = 169.92