Jermaine earned $2000 during summer. He plans to put the money in a savings account for 40 years. The account will earn 9% simple interest annually what will the Balance be after 40 years.
To calculate the balance after 40 years with simple interest, we use the formula:
Balance = Principal + (Principal * interest rate * time)
Where:
Principal = $2000
Interest rate = 9% = 0.09
Time = 40 years
Balance = $2000 + ($2000 * 0.09 * 40)
Balance = $2000 + ($2000 * 0.09 * 40)
Balance = $2000 + ($2000 * 3.6)
Balance = $2000 + $7200
Balance = $9200
Therefore, the balance in the savings account after 40 years will be $9200.