Let's use the formula for simple interest: i = p*r*t, where p is the principal amount, r is the interest rate as a decimal fraction, and t is the number of years.
Filling in the given info: i = $4000*0.014*4 = $224.
She will have accumulated $224 in interest over those 4 years.
Answer:
$224
Step-by-step explanation:
We have been Sarah invests $4,000 in a money market account she receives 1.4% simple interest annually. We are asked to find the amount of interest Sarah will get after 4 years.
We will use simple interest formula to solve our given problem.
[tex]I=Prt[/tex], where,
I = Amount of interest after t years,
P = Principal amount,
r = Annual interest rate in decimal form,
t = Time in years.
First of all, we will convert our given interest rate in decimal form:
[tex]1.4\%=\frac{1.4}{100}=0.014[/tex]
Upon substituting our given values in simple interest formula, we will get:
[tex]I=\$4,000\cdot 0.014\cdot 4[/tex]
[tex]I=\$224[/tex]
Therefore, Sarah will get an amount of $224 in interest after 4 years.
