Jayden opens a savings account with $100.00. His account earns 4% simple interest annually. How much money will be in his account one year later if he makes no deposits or withdrawals?
The amount of money in Jayden's account after one year can be calculated using the formula for simple interest:
A = P(1 + rt)
Where:
A = Total amount of money in the account after one year
P = Principal amount (initial amount) = $100.00
r = Interest rate (as a decimal) = 4% = 0.04
t = Time in years = 1
Plugging in the values:
A = 100(1 + 0.04 * 1)
A = 100(1 + 0.04)
A = 100(1.04)
A = $104.00
Therefore, the total amount of money in Jayden's account after one year will be $104.00.