Question

A bank account balance, b, for an account starting with s dollars, earning an annual interest rate, r, and left untouched for n years can be calculated as Find a bank account balance to the nearest dollar, if the account starts with $200, has an annual rate of 4%, and the money left in the account for 10 years.

Answer 1

Answer:

Part A:

As any particular interest is not mentioned, we will calculate the simple interest formula.

$SI=p\times r\times t$

Now as per given scenario, here p is s.

t is n

So, we can calculate interest as:

$I=s\times r\times n$

And $b=s+I$

Part B:

Here p = 200

r = 4% or 0.04

t = 10 years

So, interest is $200\times0.04\times10=80$ dollars

And amount after 10 years is = $200+80=280$ dollars

Answer 2

Well, assuming is "simple interest" rate

$\bf \qquad \textit{Simple Interest Earned Amount}\\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \ 200\\ r=rate\to 4\%\to \frac{4}{100}\to &0.04\\ t=years\to &10 \end{cases}$