Question

When George was born, his grandfather put $1000 into a savings account which earns 4%

interest every year. When he turns 16, his grandfather gives George the money to help him
buy a car. How much money does George get on his 16th birthday?

Answer 1

$1,640

Explanation:

Total Amount = Principal Amount + Interest Earned

Interest Earned = Principal * Interest Rate (as a decimal) * time (in years)

Interest = 1000(.04)(16) which equals $640

Add $640 to the principal of $1000 and George will receive $1,640 on his 16th birthday