Question

mr perkins has $120 in a savings account. the interest rate is 5% per year and is simple interest. how much will he have in 2 years?

Answer 1

To ask how much Mr. Perkins will have after 2 years is asking for the total or the "A".

Principle (P) - initial investment - $120

Interest rate (r) - 5% => 0.05

Term / time period (t) - 2 years

Interest (I) - amnt. after everything is multiplied

I = Prt

A = I + P

Interest = 120 × 0.05 × 2

Total = I + 120

Interest = $12

A = 12 + 120

A = $132

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Answers :

Interest : $12 after 2 years

Total after 2 years : $132

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I hope that helps you out!!

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