EXPLANATION
Since the initial amount of money was of $29,820, and the account earns interest rate by a reason of 7% per year, we can use the simple interest rate equation as shown as follows:
[tex]Simple\text{ Interest = P}\cdot r\cdot t[/tex]Where P=Principal= 29,820, r=rate in decimal form=7/100=0.07 , t=time in years=4,
Plugging in the numbers into the expression:
[tex]\text{Interest}=29,820\cdot0.07\cdot4[/tex]Multiplying numbers:
[tex]\text{Interest}=8,349[/tex]Adding the Interest to the Initial Capital: 29,820+8,349 = 38,169
In conclusion, Colin will have $38,169 after 4 years
