Robin saves $500 at a yearly simple interest rate of 4%. What is the total amount of

money she has after 20 years?

1 answer

To calculate the total amount of money Robin has after 20 years, we use the formula for calculating simple interest:

Total amount = Principal + (Principal * rate * time)

Total amount = $500 + ($500 * 0.04 * 20)
Total amount = $500 + ($500 * 0.8)
Total amount = $500 + $400
Total amount = $900

Therefore, after 20 years, Robin will have a total amount of $900.