how much would adam have to deposit in a saving account to earn 100 dollars in interest over 4 years at 5% simple annual interest rate.
I = PRT
100 = P * 0.05 * 4
100 = P * 0.2
100/0.2 = P
500 = P
To calculate the amount that Adam would have to deposit in a savings account to earn $100 in interest over 4 years at a 5% simple annual interest rate, we can use the formula for simple interest:
I = P * r * t
Where:
I = Interest earned
P = Principal amount (initial deposit)
r = Interest rate (expressed as a decimal)
t = Time period (in years)
In this case, we know that:
I = $100
r = 5% = 0.05
t = 4 years
Let's solve for P:
$100 = P * 0.05 * 4
Divide both sides of the equation by (0.05 * 4):
$100 / (0.05 * 4) = P
Simplify the equation:
$100 / 0.20 = P
$500 = P
Therefore, Adam would have to deposit $500 in the savings account to earn $100 in interest over 4 years at a 5% simple annual interest rate.
To calculate how much Adam would have to deposit in a savings account to earn $100 in interest over 4 years at a 5% simple annual interest rate, you can use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, the interest earned is $100, the rate is 5% (or 0.05 in decimal form), and the time period is 4 years.
Let's assume the principal, or the amount Adam needs to deposit, is denoted by P.
Substituting the given values into the formula, we have:
$100 = P x 0.05 x 4
Simplifying the equation, we get:
$100 = 0.2P
To find the value of P, we can divide both sides of the equation by 0.2:
$100 / 0.2 = P
$500 = P
So, Adam would need to deposit $500 in the savings account to earn $100 in interest over 4 years at a 5% simple annual interest rate.