Marcy deposits $320 in an account that earns 3.5% simple interest per year. What is the balance in the account after 4 years?
364.80
To calculate the balance in the account after 4 years, we need to determine the amount of interest earned and then add it to the initial deposit.
Step 1: Calculate the interest earned per year
The formula for simple interest is: I = P * r * t
where:
I = interest
P = principal amount (initial deposit)
r = interest rate per year
t = number of years
Given that Marcy's initial deposit is $320 and the interest rate is 3.5%, we can calculate the interest earned per year as follows:
I = 320 * 0.035 * 1 = $11.20
Step 2: Calculate the total interest earned after 4 years
To find the total interest earned, we multiply the interest per year by the number of years:
Total Interest = I * t = $11.20 * 4 = $44.80
Step 3: Calculate the balance in the account after 4 years
To find the balance, we add the total interest earned to the initial deposit:
Balance after 4 years = Initial Deposit + Total Interest = $320 + $44.80 = $364.80
Therefore, the balance in the account after 4 years will be $364.80.
To find the balance in the account after 4 years, we need to calculate the amount of interest earned and add it to the initial deposit.
The formula to calculate simple interest is:
Interest = Principal * Rate * Time
Where:
- Principal is the initial deposit or the starting amount.
- Rate is the interest rate per year.
- Time is the number of years.
In this case, the principal is $320, the rate is 3.5% (or 0.035 as a decimal), and the time is 4 years.
Let's plug these values into the formula:
Interest = $320 * 0.035 * 4
= $44.80
The interest earned after 4 years is $44.80.
To calculate the balance in the account after 4 years, we need to add the interest to the initial deposit:
Balance = Principal + Interest
= $320 + $44.80
= $364.80
Therefore, the balance in the account after 4 years is $364.80.