Question

Ms. Leon opened a savings

account with an initial deposit
of $750 and will not make any more
deposits or withdrawals. The account
earns 3% simple interest.
What is the total amount that
Ms. Leon will have in her account at
the end of 4 years?

Answer 1

Answer: $840

Explanation:

The formula for calculating simple interest is:

I = P * r * t

where:

I is the interest earned

P is the principal (the initial deposit)

r is the interest rate (as a decimal)

t is the time (in years)

Using this formula, we can find the interest earned on Ms. Leon's account over 4 years:

I = 750 * 0.03 * 4

I = 90

So Ms. Leon will earn $90 in interest over 4 years. To find the total amount in her account at the end of 4 years, we need to add the interest earned to the initial deposit:

Total amount = Initial deposit + Interest earned

Total amount = 750 + 90

Total amount = $840

Therefore, Ms. Leon will have a total of $840 in her savings account at the end of 4 years.