Note: Enter your answer and show all the steps that you use to solve this problem in the space provided.
Yvonne put $4,000 in a savings account. At the end of 3 years, the account had earned $960 in simple interest.
How much does she have in her account at the end of 3 years?
At what annual simple interest rate did the account grow? Show your work.
How many more dollars would she have in her account if the interest rate were 1% greater? Show your work.
4960
4000*r*3 = 960
r = 0.08
an extra 1% of 4000 is $40 more per year
Interest = principal times rate times time
960 = 4,000 * r * 3
960 = 12,000r
Solve for r.
First question 4960?
Second question answer
Her account grew by 8%
@oobleck is correct!
thinks
Everyone here is wrong you guys gave me an F
To find out how much Yvonne has in her account at the end of 3 years, we need to add the initial amount ($4,000) to the interest earned ($960).
Step 1: Add the initial amount to the interest earned.
$4,000 + $960 = $4960
Therefore, Yvonne has $4960 in her account at the end of 3 years.
To find out the annual simple interest rate, we can use the formula for simple interest: I = P * r * t, where I is the interest, P is the principal amount, r is the annual interest rate, and t is the time period.
Step 1: Substitute the known values into the formula.
$960 = $4,000 * r * 3
Step 2: Solve for r.
r = $960 / ($4,000 * 3)
r = $960 / $12,000
r = 0.08
Therefore, the annual simple interest rate is 0.08 or 8%.
To find out how many more dollars Yvonne would have in her account if the interest rate were 1% greater, we need to calculate the interest earned at a 1% higher rate and subtract the original interest earned.
Step 1: Calculate the interest earned at the higher rate.
New interest = $4,000 * (0.08 + 0.01) * 3 = $4,000 * 0.09 * 3 = $1,080
Step 2: Calculate the difference in interest.
Difference = New interest - Original interest
Difference = $1,080 - $960 = $120
Therefore, Yvonne would have $120 more in her account if the interest rate were 1% greater.