Deborah deposits $200 into an account that pays simple interest at the rate of 7%. How much will she have at the end of 4 months?
She will have 56.00
To calculate the amount Deborah will have at the end of 4 months, we can use the formula for simple interest:
Interest = Principal (P) * Rate (R) * Time (T)
First, let's calculate the interest earned by Deborah's deposit:
Interest = $200 * 7% * 4/12 (as 4 months is equivalent to 4/12 of a year)
= $200 * 0.07 * 4/12
= $200 * 0.07 * 0.33
= $4.62
The interest earned is $4.62.
To find the total amount, we need to add the interest to the principal deposit:
Total amount = Principal + Interest
= $200 + $4.62
= $204.62
Therefore, Deborah will have $204.62 at the end of 4 months.