SOLUTION: Lisa deposits $800 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first 5 years?

Question 894706: Lisa deposits $800 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first 5 years?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
Do it like this one:
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A savings account earns 4% annual interest compounded quarterly. How much interest would $500 earn if it was invested for one year?
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1 yr = 4 quarters
4%/yer = 1% per quarter
FV = PV*(1.01)^4
FV = 500*(1.01)^4 = $520.30
Interest = $20.30

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