Lyla deposited $250 in an account earning 4% simple interest. At the end on one year, how much was in the account, assuming no more deposits or withdrawals?
250 * 1.04 = ?
$260
Thanks Ms. Sue
You're welcome.
To calculate the total amount in the account at the end of one year, we need to calculate the simple interest earned and add it to the initial deposit.
The formula for calculating simple interest is:
Simple Interest = Principal * Interest Rate * Time
Given:
Principal (P) = $250
Interest Rate (R) = 4% or 0.04 (decimal form)
Time (T) = 1 year
Now we can plug these values into the formula to calculate the simple interest:
Simple Interest = 250 * 0.04 * 1 = $10
To calculate the total amount in the account at the end of one year, we add the simple interest to the initial deposit:
Total Amount = Principal + Simple Interest = $250 + $10 = $260
Therefore, at the end of one year, there will be $260 in the account, assuming no more deposits or withdrawals.