Jayden opens a savings account with $100.00. His account earns 4% simple interest annually. How much money will be in his account one year later if he makes no deposits or withdrawals?
(1 point)
Responses
$96.00
$100.00
$104.00
$148.00
The formula to calculate simple interest is:
Interest = Principal x Rate x Time
In this case, the principal (amount of money in the account) is $100.00 and the interest rate is 4%. The time period is one year.
So, the interest earned would be:
Interest = $100.00 x 0.04 x 1 = $4.00
Adding this interest to the original amount, we get:
$100.00 + $4.00 = $104.00
Therefore, there will be $104.00 in Jayden's account one year later.
The correct answer is $104.00.