Answer with step-by-step explanation:
To calculate the total interest and the total amount in the account after 6 years, we can use the formula for simple interest:
Simple Interest (I) = Principal amount (P) × Rate of interest (R) × Time period (T)
Given:
Principal amount (P) = $700
Rate of interest (R) = 4% per annum
Time period (T) = 6 years
Let's calculate:
(a) Total Interest Earned:
[tex]I = P \times R \times T \\\\I = 700 \times 0.04 \times 6 \\\\I = 168[/tex]
(b) Total amount in the account:
Total amount = Principal + Total Interest
Total amount = $700 + $168
Total amount = $868
