Question

anna´s bank pays 8% simple. she opens an account with $5,000. find the balance in the account after 12 years​

Answer 1

$9800

Explanation:

Use the formula for amount with simple interest:
`A = P(1 + rt)`

A is the final amount

P is the principal, meaning starting money

r is the rate of interest in decimal form

t is the time

First, convert the interest rate into decimal form by dividing by 100. This will be "r" in the formula.

8% ÷ 100 = 0.08 = r

We know time is 12 years. t = 12

We know she starts the account with %4000. P = 5000

Substitute P, r, and t into the formula.

A = P(1 + rt)

A = 5000(1 + (0.08)(12)) Solve inside the brackets first

A = 5000(1 + 0.96)

A = 5000(1.96) Multiply

A = 9800 Final answer

Anna will have $9800 after 12 years.