Jaden opens the savings account with $100. 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 in Jaden's account after one year with 4% simple interest, we use the formula:
A = P(1 + rt)
Where:
A = Total amount in the account after one year
P = Initial amount (principle), $100
r = Interest rate, 4% or 0.04
t = Time in years, 1 year
Plug in the values:
A = $100(1 + 0.04(1))
A = $100(1 + 0.04)
A = $100(1.04)
A = $104
Therefore, after one year, there will be $104 in Jaden's savings account.