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 round your answer to the nearest cent

Answer 1

To calculate how much Trevor will have in her savings account after 5 years with a simple interest rate of 12% per year, we can use the formula for simple interest:

\[
A = P + (P \times r \times t)
\]

Where:
- \( A \) is the total amount of money after interest
- \( P \) is the principal amount (initial investment)
- \( r \) is the interest rate (as a decimal)
- \( t \) is the time in years

Given:
- \( P = 99,718 \)
- \( r = 12\% = 0.12 \)
- \( t = 5 \)

First, calculate the interest earned over 5 years:

\[
\text{Interest} = P \times r \times t = 99,718 \times 0.12 \times 5
\]

Now calculate that step-by-step:

1. Calculate \( 0.12 \times 5 \):
\[
0.12 \times 5 = 0.6
\]

2. Then calculate the interest:
\[
\text{Interest} = 99,718 \times 0.6 = 59,830.8
\]

Now, add the interest to the principal to find the total amount:

\[
A = P + \text{Interest} = 99,718 + 59,830.8 = 159,548.8
\]

Finally, rounding to the nearest cent:

\[
A \approx 159,548.80
\]

So, Trevor will have approximately **$159,548.80** in total after 5 years.