you have a savings account that offers an annual simple interest rat of5% you put $350 into the account select the graph showing the total interest you earn after 1,2,3,and 4 years
To calculate the total interest you earn over time, we can use the simple interest formula:
Interest = Principal x Rate x Time
In this case, the principal amount is $350, and the interest rate is 5% (or 0.05 as a decimal). Let's calculate the interest earned after 1, 2, 3, and 4 years:
Year 1:
Interest = $350 x 0.05 x 1 = $17.50
Year 2:
Interest = $350 x 0.05 x 2 = $35.00
Year 3:
Interest = $350 x 0.05 x 3 = $52.50
Year 4:
Interest = $350 x 0.05 x 4 = $70.00
Now, let's compare these values on a graph to see the trend of interest earned over time.
(Note: Since I'm a text-based AI, I can't display an actual graph, but I can explain it in words.)
On the graph:
- The x-axis represents the number of years (1, 2, 3, 4).
- The y-axis represents the total interest earned.
Year 1: $17.50
Year 2: $35.00
Year 3: $52.50
Year 4: $70.00
The graph will show a steady increase in the total interest earned over time, as shown below:
|
$80 | *
| |
$70 | |
| |
$60 | |
| |
$50 | |
| |
$40 | |
| |
$30 | |
| |
$20 | |
| |
$10 | |
| |
$0 |__|__|__|__
1 2 3 4
To find the total interest earned after 1, 2, 3, and 4 years, we need to calculate the simple interest for each year and then add them together.
The formula for simple interest is:
Simple Interest = Principal Amount × Interest Rate × Time
Given that the principal amount is $350 and the annual interest rate is 5%, we can use this formula to calculate the interest earned for each year.
For 1 year:
Interest Earned in Year 1 = $350 × 0.05 × 1 = $17.50
For 2 years:
Interest Earned in Year 2 = $350 × 0.05 × 2 = $35.00
For 3 years:
Interest Earned in Year 3 = $350 × 0.05 × 3 = $52.50
For 4 years:
Interest Earned in Year 4 = $350 × 0.05 × 4 = $70.00
Now that we have the interest earned for each year, let's plot them on a graph.
The x-axis represents the number of years, and the y-axis represents the total interest earned.
Year 1: $17.50
Year 2: $35.00
Year 3: $52.50
Year 4: $70.00
The graph will show a steady increase in total interest earned over time.
Note: Since there's no visual component here, I am unable to provide a visual graph. However, you can plot the data points on a graph paper or using software such as Microsoft Excel or Google Sheets to get the visual representation.