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g100num [7]
2 years ago
5

Alexa opens a savings account with a starting balance of $10,000. She will not make any additional deposits or withdrawals. The

account earns 5% simple interest. What is the total amount that Alexa will have in her account at the end of 4 years?
Mathematics
1 answer:
Mice21 [21]2 years ago
5 0

Answer:

$12,000

Step-by-step explanation:

Use the simple interest formula: P = A(1 + rt)

P = final balance (?)

A = starting balance (10,000)

r = interest rate (0.05)

t = years (4)

P = 10,000(1 + 0.05 · 4)

P = 10,000(1 + 0.2)

P = 10,000(1.2)

P = 12,000

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