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?
$96.00
$96.00
$100.00
$100.00
$104.00
$104.00
$148.00
$104.00
Explanation:
The formula for calculating simple interest is:
Simple Interest = Principal x Rate x Time
Given that Jayden opens an account with $100.00 and the interest rate is 4%, after one year the interest that he will earn is calculated as:
Interest = $100.00 x 0.04 x 1 = $4.00
Therefore, the total amount of money in his account after one year will be:
Total = $100.00 + $4.00 = $104.00