Boden's account has a principal of $300 and a simple interest rate of 3.7%. Complete the number line. How much money will be in the account after 4 years, assuming Boden do…

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asked Feb 13, 2023 178k views

1 Answer

Arun George · Answer 1 · 2023-02-18T15:24:57+0000

Recall that the simple interest is only effective over the principal amount. So, it doesn't take into account the generated interest.

So, in one year, the interest would be

$300\cdot(3.7)/(100)=11.1$

since we have 4 years, we will have

$4\cdot11.1\text{ = 44.4}$

of interest.

We add this to the principal, so we have

so in the end, the account would have 344.4