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satela [25.4K]
3 years ago
8

. Cody has $700 in a savings account that pays 4% simple interest. What is the amount of simple interest he will earn in 2 years

? .
Mathematics
2 answers:
netineya [11]3 years ago
7 0

Answer: $756.00

Step-by-step explanation:

Ganezh [65]3 years ago
5 0
A = $756.00

(I = A - P = $56.00)

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 4%/100 = 0.04 per year.

Solving our equation:
A = 700(1 + (0.04 × 2)) = 756 
A = $756.00

The total amount accrued, principal plus interest, from simple interest on a principal of $700.00 at a rate of 4% per year for 2 years is $756.00.
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