If Diego closes his account after the four years, how much money will he have total? Diego deposited

Question

$
10
,
000
$10,000 for
4
4 years at a rate of
6
%
6% simple interest.
​Find the amount of interest Diego earned after four years.

Answer 1

To calculate the simple interest earned by Diego, you can use the formula for simple interest:

$$I=P\times r\times t$$

where:

• $I$ is the interest,
• $P$ is the principal amount (initial deposit),
• $r$ is the rate of interest (expressed as a decimal),
• $t$ is the time in years.

In this case:

• $P=10,000$
• $r=6$
• $t=4$ years

Now, we can calculate the interest:

$$I=10,000\times 0.06\times 4$$ $$I=10,000\times 0.24$$ $$I=2,400$$

So, the interest earned after four years is $2,400.

To find the total amount Diego will have after closing his account, we add the interest to the principal:

$$\text{Total Amount}=P+I=10,000+2,400=12,400$$

Therefore, Diego will have a total of $12,400 after four years.