Cody has $700 in a savings account that pays 4% simple interest. How much will he have in 1 year
700 * 1.04 = ____
To calculate the amount Cody will have in 1 year, we need to apply the simple interest formula:
Simple Interest = Principal (P) * Rate (R) * Time (T)
Given:
Principal (P) = $700
Rate (R) = 4% = 4/100 = 0.04 (in decimal)
Time (T) = 1 year
Applying the formula:
Simple Interest = $700 * 0.04 * 1
Simple Interest = $28
To find the final amount, we add the simple interest to the initial principal:
Final Amount = Principal + Simple Interest
Final Amount = $700 + $28 = $728
Therefore, after 1 year, Cody will have $728 in his savings account.