Question

janice deposits $4,500 into an investment account that earns 4% simple interest. she makes no additional deposits or withdrawals. complete the sentence about the amount of interest earned and the total balance after 5 years. choose the correct answer from each drop - down menu to complete the sentence. after 5 years, janice’s investment account will have earned in interest and will have a total balance of.

Explanation:

Step1: Recall simple interest formula

The simple interest formula is $I = P \times r \times t$, where $P$ is principal, $r$ is annual interest rate, $t$ is time in years.

Step2: Plug in given values

$P = 4500$, $r = 0.04$, $t = 5$
$I = 4500 \times 0.04 \times 5$

Step3: Calculate earned interest

$I = 4500 \times 0.2 = 900$

Step4: Calculate total balance

Total balance = Principal + Interest = $4500 + 900 = 5400$

Answer:

After 5 years, Janice's investment account will have earned $\boldsymbol{900}$ in interest and will have a total balance of $\boldsymbol{5400}$.