Andrea has a savings account with $80 that earns 2% interest per year, not compounded. How much money will she have in 10 years, to

Question

Andrea has a savings account with $80 that earns 2% interest per
year, not compounded. How much money will she have in 10 years, to
nearest penny? (Give your answer in dollars)​

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2 weeks 2021-11-16T05:20:57+00:00 1 Answer 0 views 0

Answers ( )

  1. Emma
    0
    2021-11-16T05:21:59+00:00

    Answer:

    After 10 years, she will has $96 in her bank.

    Step-by-step explanation:

    It is given that Andrea’s saving account is $80 and earns 2% interest per year as a Simple Interest (Not Compounded). Using simple interest formula, Interest = (P×R×T)/100 where P is the principal, R is the interest rate and T is number of years :

    I =  \frac{p \times r \times t}{100}

    P = $80

    R = 2%

    T = 10 years

    I =  \frac{80 \times 2 \times 10}{100}

    I =  \frac{1600}{100}

    I = 16

    It is given that the interest amount is $16. So the total amount she has after 10 years in the bank is $96 :

    interest amount = $16

    principal = $80

    total = $16 + $80

    = $96

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