Question

Kyra has been babysitting since sixth grade. She has saved $1,000 and wants to open an account at the bank so that she earns interest on her savings. Simple Bank pays simple interest at a rate of 10% per year. After 2 years, if she does not add money to her account, how much money will Kyra have?

a) $1,200
b) $1,100
c) $1,020
d) $1,1000

Answer 1

To calculate simple interest, use the formula: Interest = P * r * t. Kyra will have $1,200 after 2 years.

Step-by-step explanation:

To calculate simple interest, we can use the formula: Interest = P * r * t. Where P is the principal amount, r is the interest rate, and t is the time in years.

In this case, Kyra has $1,000 and wants to earn interest at a rate of 10% per year for 2 years. Plugging in the values into the formula, Interest = $1,000 * 0.10 * 2 = $200.

Therefore, after 2 years, Kyra will have $1,000 + $200 = $1,200.