Question

Calculate the amount of money you have at the end of the indicated time period.

You invest 2000 in an account that pays simple interest of 2% for 10 years.
The amount of money you'll have at the end of 10 years is $__

Answer 1

The amount of money you'll have at the end of 10 years is $2400.

Explanation:

Here, the deposited Principal = $2000

Time = 10 years

Rate of Interest = 2%

Now, as we know:

`\textrm{SIMPLE INTEREST} = \frac{{P * R * T}}{{100}}\\\implies SI = (2000 * 2 * 10)/(100)   = 400`

or, SI = $400

Now, AMOUNT = SIMPLE INTEREST + PRINCIPAL

or, A = $400 + $20000 = $2400

or, A = $2400

Hence, The amount of money you'll have at the end of 10 years is $2400.