Larry put $1,287 into a savings account 8 years ago.

The account earned 4% simple annual interest.
He made no additional deposits or withdrawals.

Based on this information, what is the balance in dollars and cents in Larry’s savings account at the end of these 8 years?

To calculate the balance in Larry's savings account at the end of 8 years with simple interest, we can use the simple interest formula:

\[
A = P(1 + rt)
\]

Where:
- $A$ is the total amount (the balance) after the interest is added.
- $P$ is the principal (the initial amount Larry deposited), which is \$1,287.
- $r$ is the annual interest rate (4% or 0.04 as a decimal).
- $t$ is the time the money is invested, which is 8 years.

### Step-by-Step Calculation:
1. **Identify the values:**
   - $P = 1287$
   - $r = 0.04$
   - $t = 8$

2. **Substitute into the formula:**
\[
A = 1287(1 + (0.04 \times 8))
\]

3. **Calculate the interest factor:**
\[
0.04 \times 8 = 0.32
\]

4. **Add this to 1:**
\[
1 + 0.32 = 1.32
\]

5. **Multiply by the principal:**
\[
A = 1287 \times 1.32 = 1,699.44
\]

### Final Answer:
Larry's savings account balance at the end of 8 years will be **\$1,699.44**.

Would you like more details or have any questions?

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Here are 5 related questions to expand this problem:
1. What would be the balance if the interest rate was 5% instead of 4%?
2. How much total interest did Larry earn over the 8 years?
3. What would be Larry's balance if the account used compound interest instead of simple interest?
4. How long would it take for Larry's money to double at 4% simple interest?
5. What if Larry deposited an additional \$500 after 4 years? What would the final balance be?

**Tip:** Simple interest is calculated only on the principal, while compound interest is calculated on both the principal and the accumulated interest.

Larry put $1,287 into a savings account 8 years ago. The account earned 4% simple annual interest. He made no additional deposits or withdrawals. Based on this information, what is the balance in dollars and cents in Larry’s savings account at the end of these 8 years?

Find out how to calculate the balance in Larry's savings account using simple interest. Larry deposited $1,287, and the account earned 4% interest over 8 years. This example demonstrates the use of the simple interest formula and is suitable for students in Grades 6-8.

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