Question

Monique opens a savings account with $500. the simple interest rate is 4%, calculated annually. how much money will she have in her account after 30 years, Assuming she does not touch the money during that time frame?

Answer 1

500 times 0.04  (4%) to find out how much she will earn in a year


500 times 0.04 is 20

Thus, she will earn 20 per year


now 20 times 30 years is 600.

Finally 600 + 500 is 1100. which means she would have 1100 dollars after 30 years

Answer 2

Solutions 

We know that Monique opens a savings account with $500. the simple interest rate is 4%, calculated annually. 

Our first step to solve this problem will be to convert 4% to decimal. 

4% = 0.04  

500 * 0.04  = how much she will earn in a year


500 * 0.04 = 20

Monique will earn $20 per year.

Since we are looking at how much money will she have in her account after 30 years, we have to multiply 20 by 30. 

20 * 30 = 600.

Add everything up

600 + 500 is 1100.