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?
To calculate the amount of money Jayden will have in his account after one year, we can use the formula for simple interest:
Interest = principal * rate * time
In this case, the principal is $100.00 and the rate is 4%, or 0.04 as a decimal. The time is 1 year.
So the interest Jayden will earn is: 100 * 0.04 * 1 = $<<100*0.04*1=4.00>>4.00
The total amount of money in his account after one year will be the principal plus the interest: 100 + 4 = $<<100+4=104.00>>104.00
Therefore, Jayden will have $104.00 in his account one year later if he makes no deposits or withdrawals.