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:

• \(P = 10,000\)
• \(r = 6% = 0.06\)
• \(t = 4\) 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.