Jaden opens the savings account with $100. His account earns 4% simple interest annually. How much money will be in his account one year later if he makes no deposits or withdrawals.

Answer 1

To calculate the amount of money in Jaden's account after one year with 4% simple interest, we use the formula:

A = P(1 + rt)

Where:
A = Total amount in the account after one year
P = Initial amount (principle), $100
r = Interest rate, 4% or 0.04
t = Time in years, 1 year

Plug in the values:

A = $100(1 + 0.04(1))
A = $100(1 + 0.04)
A = $100(1.04)
A = $104

Therefore, after one year, there will be $104 in Jaden's savings account.