Question

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Ann has $80,000 in a savings account. The interest rate is 8%
per year and is not compounded. How much will she have in
total in 2 years?

Answer 1

Ann will have a total of $92,800 in her savings account after 2 years.

Explanation:

Total Amount = Principal + (Principal * Interest Rate * Time)

Given:

Principal (P) = $80,000

Interest Rate (R) = 8% per year (0.08 in decimal form)

Time (T) = 2 years

Substituting these values into the formula, we can calculate the total amount:

Total Amount = $80,000 + ($80,000 * 0.08 * 2)

Total Amount = $80,000 + ($80,000 * 0.16)

Total Amount = $80,000 + $12,800

Total Amount = $92,800