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
$96.00
$100.00
$100.00
$104.00
$104.00
$148.00
The correct answer is $104.00.
To calculate the amount of money in the account after one year, we can use the formula for simple interest:
A = P(1 + r*t)
Where:
A = final amount
P = principal amount (initial deposit)
r = interest rate (expressed as a decimal)
t = time (in years)
Plugging in the given values:
A = $100(1 + 0.04*1)
A = $100(1.04)
A = $104.00
Therefore, there will be $104.00 in Jayden's account one year later if he makes no deposits or withdrawals.