Rusty has $408 in a savings account. The account earns 5.5% interest every year. The interest is not compounded. How much interest will he earn in 4 years?
Responses
A$89.76
$89.76
B$67.83
$67.83
C$22.44
$22.44
D$118.48
To find the interest earned in 4 years, we can use the formula:
Interest = Principal * Rate * Time
In this case, the principal is $408, the rate is 5.5%, and the time is 4 years.
Interest = $408 * 0.055 * 4
Interest = $89.76
Therefore, Rusty will earn $89.76 in interest after 4 years.
The correct answer is: A$89.76