Question

Jordan has $275.00 in his bank account the bank will pay jordan 4% interest per year on the value of hois account if jordan doesn't add to his account or withdraw anhy money how much will he have in his account after one year

Answer 1

`\$286.00`

Explanation:

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=1\ years\\ P=\$275.00\\r=4\%=4/100=0.04`

substitute in the formula above

`A=275.00(1+0.04*1)`

`A=275.00(1.04)`

`A=\$286.00`