Question

Patricio deposits $800 in a savings account that pays 2.5% simple interest. He does not withdraw any money from the account, and he makes no other deposits. How much money does Patricio have in the savings account after 4 years?

Answer 1

Answer: The formula for simple interest is:

I = Prt

Where:

I is the interest earned

P is the principal (the initial amount deposited)

r is the interest rate (as a decimal)

t is the time period in years

Using this formula, we can calculate the interest earned by Patricio after 4 years:

I = Prt

I = 800 * 0.025 * 4

I = 80

So, after 4 years, Patricio will have earned $80 in interest. Adding this to the initial deposit of $800, the total amount of money he will have in the account is:

Total = P + I

Total = 800 + 80

Total = $880

Therefore, Patricio will have $880 in the savings account after 4 years.

Explanation: