Question

Alyson deposits $500 in the bank for 12 years. The bank offers her a 4%

simple interest rate. How much money will be in her account at the end of
the 12 years? (Remember to round your answer to the nearest cent if
necessary.)

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$500\\ r=rate\to 4\%\to (4)/(100)\dotfill &0.04\\ t=years\dotfill &12 \end{cases} \\\\\\ A = 500[1+(0.04)(12)] \implies A = 740`