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 = ?
To calculate the amount in the account after one year, we can use the formula for calculating simple interest:
I = P * r * t,
Where:
- I is the interest earned,
- P is the principal or initial deposit,
- r is the interest rate, and
- t is the time in years.
In this case:
- P = $250 (the initial deposit),
- r = 0.04 (4% expressed as a decimal), and
- t = 1 (1 year).
Now, let's calculate the interest earned:
I = $250 * 0.04 * 1 = $10.
Since no withdrawals were made, the total amount in the account after one year will be the initial deposit plus the interest earned:
Total amount = $250 + $10 = $260.
Therefore, at the end of one year, there will be $260 in Lyla's account.