You have $ 400 and a bank is offering 4.0 % interest on deposits. If you deposit the money in the bank, how much will you have in one year?

I will have $416 in a year's time.

Explanation:

In calculating the amount in the deposits account in one year's time I used the Future Value formula, which is FV=PV * (1+r) ^n

PV is present value=$400

r=rate=4%

n=year=1

FV=400 (1+0.04) ^1

FV=$416

Alternatively, one could calculate 1 year interest on the principal by multiplying it by 4%, then add the interest of $16 to principal of $400.