Question

jason deposit $5000 in a bank account that will pay him 4% simple interest annually if jason deposits no more than the initial $5000, how much money will be in the account at the end of five years ? (the formula for simple interest is l = prt or interest = principal * rate * time. use a decimal to express the interest when using that formula.)

Answer 1

$\sf I=prt$

Plug in what we know:

$\sf I=5000(0.04)(5)$

Multiply:

$\sf I=1000$

Add this to the original amount.

$\sf 5000+1000=\boxed{\sf \ 6000}$

So he will have $6000 in his account after 5 years.