Question

Andrea has a savings account with $80 that earns 2% interest per

Answer 1

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