Mark deposited $2000 in his savings account. The account earns an annual interest rate of 4%. How much interest will Mark earn after his money has been in the account for one year?

Answer 1

To calculate the interest Mark will earn after one year, we can use the formula for simple interest:

Interest = Principal x Rate x Time

Where:
Principal = $2000
Rate = 4% or 0.04
Time = 1 year

Plugging in the values:

Interest = $2000 x 0.04 x 1
Interest = $80

Therefore, Mark will earn $80 in interest after his money has been in the savings account for one year.