Question

3. Quincy deposits $400 in a new bank account that earns 4% simple interest per year. What

is the total amount in the account after 3 years?

Answer 1

$448

Explanation:

We can use the simple interest formula for this:

`A = P (1 + rt)`

P = initial balance

r = annual interest rate

t = time

First, change 4% into its decimal form:

4% ->
`(4)/(100)` -> 0.04

Now, lets plug in the values:

`A=400(1+(0.04)(3))`

`A=448`

The total amount in the account after 3 years will be $448