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6 January, 08:42

Nariah is starting a student savings account at the bank. She make an inital deposit of $500. With the bank giving a simple interest rate of 1/2% how much interest will Nariah expect to earn in 4 years

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  1. 6 January, 09:50
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    The total amount accrued, principal plus interest, from simple interest on a principal of $500.00 at a rate of 0.5% per year for 4 years is $510.00, thus Nariah earned $10 in interest.

    Step-by-step explanation:

    A = $510.00

    (I = A - P = $10.00)

    Equation:

    A = P (1 + rt)

    Calculation:

    First, converting R percent to r a decimal

    r = R/100 = 0.5%/100 = 0.005 per year.

    Solving our equation:

    A = 500 (1 + (0.005 * 4)) = 510

    A = $510.00

    The total amount accrued, principal plus interest, from simple interest on a principal of $500.00 at a rate of 0.5% per year for 4 years is $510.00.
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