Answer:
14800
Step-by-step explanation:
The formula for simple interest (I) in terms of principal (P), rate (R) and time (T) is given as follows;
I = P x R x T / 100 ------------- (i)
Given:
Principal (P) = Initial amount being put into the account = 10000
Rate (R) = The interest rate being offered by the account manager = 4%
Time (T) = Time taken = 12 years
Substitute these values into equation (i) as follows:
I = 10000 x 4 x 12 / 100
I = 4800
Therefore, the initial amount will yield an interest of 4800 for those 12 years.
The total amount the employee will thus have in 12 years will be the sum of the initial amount and the interest. i.e
Amount = P + I
Amount = 10000 + 4800
Amount = 14800
