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Nataly [62]
3 years ago
11

Amelia opened a new savings account at a local bank. She made a beginning deposit of $1,000. The account earns 2% simple interes

t. If Amelia makes no additional deposits or withdrawals, what is the total amount that Amelia will have in her account at the end of 5 years?
Mathematics
1 answer:
Grace [21]3 years ago
3 0

Answer:

Step-by-step explanation:

We would apply the formula for determining simple interest which is expressed as

I = PRT/100

Where

I = interest at the end of t years

r represents the interest rate.

P represents the principal or initial amount deposited.

t represents the number of years of investment.

From the information given,

P = 1000

R = 2%

T = 5 years

Therefore,

I = (1000 × 2 × 5)/100

I = $100

The total amount in the account after 5 years would be

1000 + 100 = $1100

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