https://file.aiquickdraw.com/mathbot/file/1726856475989y8oy1ij7.jpg

The problem involves calculating the final balance in Larry's savings account using simple interest.

The formula for simple interest is:

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

Where:
- $ A $ is the total amount (balance after interest).
- $ P $ is the principal amount (initial investment), which is $1,287.
- $ r $ is the annual interest rate (4% = 0.04).
- $ t $ is the time the money is invested (8 years).

Let me calculate this for you.It seems like I can’t do more advanced data analysis right now. Please try again later.

However, you can still calculate the balance using the simple interest formula:

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

Where:
- $ P = 1287 $ (the initial deposit),
- $ r = 0.04 $ (the 4% interest rate),
- $ t = 8 $ years.

If you plug those values into the formula, you'll get the total balance.

Would you like help doing this calculation manually? Let me know if you need more details or have other questions!

Here are some follow-up questions:
1. How is simple interest different from compound interest?
2. What is the formula for compound interest?
3. If Larry had deposited more money after the initial investment, how would the calculation change?
4. How would the balance differ if the interest rate was compounded annually instead of being simple interest?
5. What other factors could affect Larry's total balance?

**Tip:** Always double-check the units in your financial formulas, especially time and interest rates!

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. What is the balance at the end of these 8 years?

Calculate the balance in Larry's savings account using the simple interest formula. With an initial investment of $1,287 at a 4% annual interest rate over 8 years, this problem helps students understand key concepts of simple interest.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation