Nariah is starting a student savings account at the bank. she make an inital deposit of $500. with the bank giving a simple interest rate of 1/2% how much interest will nariah expect to earn in 4 years

The total amount accrued, principal plus interest, from simple interest on a principal of $500.00 at a rate of 0.5% per year for 4 years is $510.00, thus Nariah earned $10 in interest.

Step-by-step explanation:

A = $510.00

(I = A - P = $10.00)

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 0.5%/100 = 0.005 per year.

Solving our equation:

A = 500(1 + (0.005 × 4)) = 510  

A = $510.00

The total amount accrued, principal plus interest, from simple interest on a principal of $500.00 at a rate of 0.5% per year for 4 years is $510.00.

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