Question

Kerri deposited $8,500 in her saving account 12 years ago, locking in an interest rate of 8% per year.

If she made no additional deposits or withdrawals in that time period, how much money would
Andrea have in her savings account after the 12 years?
A. $8,160
B. $8,500
C. $16,660
D. $90,100
Please show work

Answer 1

$16,660

Explanation:

First, converting R percent to r a decimal

r = R/100 = 8%/100 = 0.08 per year.

Solving our equation:

A = 8500(1 + (0.08 × 12)) = 16660

A = $16,660.00

The total amount accrued, principal plus interest, from simple interest on a principal of $8,500.00 at a rate of 8% per year for 12 years is $16,660.00.

(i hope i helped)