Alyson deposits $500 in the bank for 12 years. The bank offers her a 4% simple interest rate. How much money will be in her account at the end of the 12 years? (Remember to round your answer to the nearest cent if necessary.)
We use the formula A = P(1 + rt), where A is the total amount in the account, P is the principal (the initial deposit), r is the interest rate, and t is the time in years.
In this case, Alyson deposits $500, so P = 500. The interest rate is 4%, so r = 0.04. The time is 12 years, so t = 12.
Using the formula, we have A = 500(1 + (0.04)(12))
= 500(1 + 0.48)
= 500(1.48)
= $740
Therefore, there will be $740 in Alyson's account at the end of the 12 years.