you put $800 in a savings account. The account earns 4% simple interest per year.What is the balance after 5 years?

Answer 1

The formula for the new balance would be A=P(1 + r)^t

1. A = new balance
2. P = principal balance -> $800
3. r = rate (in decimal form)
4. t = time in years -> 5 years

To find the rate, convert 4% to decimal

1. 4/100 = 0.04

A=P(1+ r)^t

1. A=800(1+0.04)⁵
2. A=800(1.04)⁵
3. A=$973.32