Question

Jordan has 275.00 in his bank account. The bank will pay Jordan 4% interest per year on the value of his account. If Jordan doesn't add to his account or withdraw any money, how much will he have in his account after one year

Answer 1

Jordan have $286 in his account after 1 year.

Solution:

Given data:

Principal (P) = $275.00

Rate of interest (R) = 4%

Time (T) = 1 year

Let us first calculate the simple interest.

Simple Interest Formula:

`$\text {S.I}=\frac{\text {PRT}}{100}`

Substitute the given values in the simple interest formula.

`$\text {S.I}=(275*4*1)/(100)`

`=11`

Simple interest = $11

Calculating the amount in account after 1 year:

Amount = Principle + Simple Interest

= $275.00 + $11

Amount = $286

Hence Jordan have $286 in his account after 1 year.