Question

Keith has $51,319 in a savings account. The interest rate is 10% per year and is not compounded. How much will he have in 4 years?

Answer 1

hello

since Keith savings is not compounded, then it mus be a simple interest

principal = $51,319

interest rate = 10% = 10/100 = 0.1

time = 4 years

$\text{simple interest (S.I)=p(1+rt)}$$\begin{gathered} s\mathrm{}i=p(1+rt) \\ si=51319(1+0.1\cdot4) \\ s\mathrm{}i=51319(1+0.4) \\ si=51319\times1.4 \\ s\mathrm{}i=71846.6 \end{gathered}$

at the end of 4 years, he will have the sum of $71846.6 in his account