Question

Trevor 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 have in total in 5 years

Answer 1

To find the total amount that Trevor will have in 5 years with an interest rate of 12% per year that is not compounded, we can use the formula for simple interest:

\[
\text{Total Amount} = \text{Principal} + (\text{Principal} \times \text{Rate} \times \text{Time})
\]

Where:
- Principal = $99,718
- Rate = 12% per year = 0.12
- Time = 5 years

Now, plug in the values:

1. Calculate the interest earned over 5 years:

\[
\text{Interest} = 99,718 \times 0.12 \times 5
\]
\[
\text{Interest} = 99,718 \times 0.6
\]
\[
\text{Interest} = 59,831.80
\]

2. Now, add the interest to the principal to get the total amount:

\[
\text{Total Amount} = 99,718 + 59,831.80 = 159,549.80
\]

Therefore, to the nearest cent, Trevor will have **$159,549.80** in total in 5 years.