Question

Tanvi has $99,718 in a savings account.The interest rate is 12%per year and is not compounded.To the nearest cent,how much will she hav ein total in 5 years?

Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Round your answer to the nearest cent.

Answer 1

To find the total amount Tanvi will have in her savings account in 5 years, we will use the formula for simple interest, \( i = prt \), where:

- \( p \) is the principal amount (the initial amount in the account),
- \( r \) is the interest rate (as a decimal),
- \( t \) is the time in years.

1. **Identify the values:**
- \( p = 99,718 \)
- \( r = 12\% = 0.12 \)
- \( t = 5 \)

2. **Calculate the interest \( i \):**
\[
i = prt = 99,718 \times 0.12 \times 5
\]
\[
i = 99,718 \times 0.12 = 11,965.08
\]
\[
i = 11,965.08 \times 5 = 59,825.40
\]

3. **Calculate the total amount after 5 years:**
\[
\text{Total} = p + i = 99,718 + 59,825.40
\]
\[
\text{Total} = 159,543.40
\]

Thus, the total amount Tanvi will have in her savings account after 5 years, rounded to the nearest cent, is **$159,543.40**.