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Let's solve this using the simple interest formula:

The formula for simple interest is:
\[
I = P \times r \times t
\]
where:
- $ P $ is the principal amount (the initial deposit),
- $ r $ is the annual interest rate (as a decimal),
- $ t $ is the time the money is invested for, in years.

From the problem:
- $ P = 2000 $ dollars,
- $ r = 4\% = 0.04 $,
- $ t = 4 $ years.

### Part (a): Total Interest Earned
We will plug the values into the simple interest formula to find the total interest $ I $.

### Part (b): Total Amount in the Account
The total amount $ A $ in the account is the sum of the principal and the interest earned:
\[
A = P + I
\]

Let me calculate these values.### Part (a): The total interest Shen will earn is **$320**.

### Part (b): The total amount in the account after 4 years (including interest) will be **$2320**.

Would you like further details or have any questions?

Here are 5 related questions to expand your understanding:

1. How does compound interest differ from simple interest?
2. What would happen if the interest rate was compounded annually instead of being simple interest?
3. How much interest would Shen earn if the interest rate were 5% instead of 4%?
4. What is the formula for finding the total interest if deposits were made monthly?
5. How would inflation affect the real value of Shen's earnings over the 4 years?

**Tip**: Always convert percentage rates to decimals when using them in formulas (e.g., 4% = 0.04).

Shen deposits $2000 into an account that pays simple interest at an annual rate of 4%. He makes no further deposits and no withdrawals for 4 years. Calculate the total interest and the final amount in the account.

Learn how to calculate the simple interest on a $2000 deposit at a 4% annual rate over 4 years. This example explains how to find the total interest and the final amount in the account, suitable for Grades 8-10.

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