To be able to go on a trip to South America, Lisa decides to save for 4 years. She opens a savings account with \( \$ 200 \). The account pays simple interest at an annual rate of \( 5 \% \). She doesn't make any more deposits. Answer the following questions. If necessary, refer to the list of financial formulas. (a) How much total interest will Lisa earn? (b) What will the total amount in the account be (including interest)? \( \$ \square \)

To find the total interest Lisa will earn, you can use the simple interest formula: \[ I = P \times r \times t \] where \( I \) is the interest, \( P \) is the principal amount (initial deposit), \( r \) is the annual interest rate (in decimal form), and \( t \) is the number of years. For Lisa's case: - \( P = 200 \) - \( r = 0.05 \) - \( t = 4 \) Calculating the interest: \[ I = 200 \times 0.05 \times 4 = 40 \] So the total interest Lisa will earn is \( \$40 \). Now, to find the total amount in the account (including interest), you simply add the interest earned to the principal: \[ \text{Total Amount} = P + I = 200 + 40 = 240 \] Thus, the total amount in the account will be \( \$240 \).