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Advocard [28]
2 years ago
11

An employee puts 10000 in a retirement account that offers 4% interest. How much will he have in 12 years

Mathematics
1 answer:
steposvetlana [31]2 years ago
4 0

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

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