Explanation:

To solve this, we use the formula for simple interest:

$I = P \cdot r \cdot t$

Where:

• $I$ = interest earned
• $P$ = principal (initial deposit)
• $r$ = annual interest rate (as a decimal)
• $t$ = time in years

Given:

• $P = 400$
• $r = 7\% = 0.07$
• $t = 4 \, \text{years}$

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Step 1: Calculate interest earned ($I$)

$I = 400 \cdot 0.07 \cdot 4 = 112$

Thus, Jamie will have earned $112 in interest after 4 years.

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Step 2: Completing the sentences:

1. This situation can be modeled by a linear function because simple interest grows at a constant rate over time.
2. The function grows by the same amount each year because the interest earned is not compounded.
3. After 4 years, Jamie will have earned $112 in interest.

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Do you want me to show the step-by-step graphing of the linear function or discuss compound interest for comparison?

Related Questions:

1. What is the total amount in Jamie’s account after 4 years?
2. How does simple interest differ from compound interest?
3. What would the total interest be after 10 years?
4. How much interest would Jamie earn in 4 years if the interest rate was 10% instead?
5. How does the graph of simple interest compare to that of compound interest?

Tip:

Always check whether the interest is simple or compound, as this changes how it grows over time!