An account holds 1200 dollars at 4% simple interest per year for 3 years. What is the final total? Enter the amount in dollars.

Explanation

Simple interest adds 1200 × 0.04 = 48 each year, so the total is 1200 + 3 × 48 = 1344 dollars. Repeatedly multiplying the growing balance by 1.04 would model repeated growth, not simple interest.