Coach Posey has $10,000 to invest. He can go to Bryant Bank that pays 5% simple interest or Hornets Bank that pays 4% interest c

Question

azamat

2 years ago

7

Coach Posey has $10,000 to invest. He can go to Bryant Bank that pays 5% simple interest or Hornets Bank that pays 4% interest c

ompounded monthly. If he plans on investing for 12 years, How much will he have if he uses Bryant Bank?

Mathematics

1 answer:

Zinaida [17] · Answer 1 · 2022-03-04T15:27:59+03:00

Here's what we know: Coach Posey has $10,000, and will be hypothetically investing in Bryant Bank for 12 years at 5% simple interest.

We can calculate the interest with the formula I = prt, where I is the interest, p is the principal (starting amount), r is the rate, and t is the amount of time.

I = $10,000(0.05)(12)
I = $10,000(0.6)
I = $6,000

He started with $10,000, and earned $6,000 interest, so he has $10,000 + $6,000, or $16,000.