charlene invested $3000 at 5% simple interest for 4 years. part 1 of 2 (a) how much interest will she earn…
charlene invested $3000 at 5% simple interest for 4 years. part 1 of 2 (a) how much interest will she earn in 4 years? charlene will earn $600 in interest. part: 1 / 2 part 2 of 2 (b) what will be the total value of the account after 4 years? the account will be worth $ in 4 years.
Answer
Explanation:
Step1: Recall simple - interest formula
The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$3000$, $r = 0.05$ (since $5%=0.05$), and $t = 4$ years.
Step2: Calculate the total value of the account
The total value $A$ of the account after $t$ years with simple interest is $A=P + I$. We know from part (a) that $I = 600$ and $P = 3000$. $A=3000 + 600$
Answer:
$3600$