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)

Question

Responses

$480
$480

$1399.21
$1399.21

$48,000.00
$48,000.00

$120.00

Answer 1

To calculate the earnings 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 (the initial deposit),
• \( r \) is the rate of interest (as a decimal),
• \( t \) is the time in years.

In this case:

• \( P = 800 \)
• \( r = 15% = 0.15 \)
• \( t = 4 \)

Now, plug in the values:

\[ I = 800 \times 0.15 \times 4 \] \[ I = 800 \times 0.6 \] \[ I = 480 \]

So, the student will have earned $480 after 4 years.

The correct response is $480.