What would be the simple interest on an amount of $4,000 at 4% interest?
2 answers:
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Answer:
$448
Step-by-step explanation:
We can use the simple interest formula for this:
<em>P = initial balance</em>
<em>r = annual interest rate</em>
<em>t = time</em>
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First, change 4% into its decimal form:
4% -> -> 0.04
Now, lets plug in the values:
The total amount in the account after 3 years will be $448