Question

Mike put $3,000 in a savings account at a simple interest rate of 4%. If Mike does not add or remove any money from the savings account, about how much money will Mike have in his savings account after 8 years?

Answer 1

1 year of interest = 4% of 3000 = 120
8 years of interest = 120 x 8 = $960
Total in the account after 8 year s= $3000 + $960 = $3960