Question

A high school student deposits their summer job earnings of $800 into a simple interest savings plan with a 15% rate. How much will the student have earned after 4 years?(1 point)
Responses

$48,000.00
$48,000.00

$480
$480

$120.00
$120.00

$1399.21

Answer 1

To calculate the earning from a simple interest savings plan, you can use the formula for simple interest:

\[
I = P \times r \times t
\]

Where:
- \(I\) is the interest earned,
- \(P\) is the principal amount (initial deposit),
- \(r\) is the annual interest rate (in decimal),
- \(t\) is the time in years.

For this scenario:
- \(P = 800\) (the amount deposited),
- \(r = 0.15\) (15% as a decimal),
- \(t = 4\) (the number of years).

Now plug in the values:

\[
I = 800 \times 0.15 \times 4
\]

Calculating that gives:

\[
I = 800 \times 0.15 = 120
\]
\[
I = 120 \times 4 = 480
\]

So, the total interest earned after 4 years is **$480**.

Therefore, the correct response is:

**$480**