Monique opens a savings account with $500. the simple interest rate is 4%, calculated annually. how much money will she have in her account after 30 years, Assuming she does not touch the money during that time frame?

Solutions

We know that Monique opens a savings account with $500. the simple interest rate is 4%, calculated annually.

Our first step to solve this problem will be to convert 4% to decimal.

4% = 0.04

500 * 0.04 = how much she will earn in a year

500 * 0.04 = 20

Monique will earn $20 per year.

Since we are looking at how much money will she have in her account after 30 years, we have to multiply 20 by 30.

20 * 30 = 600.

Add everything up

600 + 500 is 1100.

500 times 0.04 (4%) to find out how much she will earn in a year

500 times 0.04 is 20

Thus, she will earn 20 per year

now 20 times 30 years is 600.

Finally 600 + 500 is 1100. which means she would have 1100 dollars after 30 years