The amount of money in Jayden's account after one year can be calculated using the formula for simple interest:
A = P(1 + rt)
Where:
A = Total amount of money in the account after one year
P = Principal amount (initial amount) = $100.00
r = Interest rate (as a decimal) = 4% = 0.04
t = Time in years = 1
Plugging in the values:
A = 100(1 + 0.04 * 1)
A = 100(1 + 0.04)
A = 100(1.04)
A = $104.00
Therefore, the total amount of money in Jayden's account after one year will be $104.00.
Jayden opens a savings account with $100.00. 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?
1 answer