Question

you put $1200 in an account that earns 3% simple interest. Find the total amount in the account after four years.

Answer 1

First, before we do anything, let's find how much interest the account has earned over the four years.
Multiply 0.003 by 4 to get 0.12
This means the account earned 12% of interest over the four years.
Now, we need to find how much the account has earned.
Multiply 1200 by 0.12 to find how much interest it currently.
You get $144.
Now we add 144 to 1200.
We get $1344.
The total amount the account has earned after four years is $1344.
Hope this helped you! :)