Linda deposits $500 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first 4 years?

Question

Alexa Campos

Mathematics

5 November, 05:43

Linda deposits $500 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first 4 years?

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Chyna · Answer 1

Assuming that she deposits $500 and forgets about it, here is what she would get after 4 years:

Year 1 - $500 * 1.04 = $520

Year 2 - $520 * 1.04 = $540.80

Year 3 - $540.80 * 1.04 = $562.432

Year 4 - $562.432 * 1.04 = $584.92928

Aftere four years. Linda would be paid $84.93