Question

Emma has 2000 dollars in a savings account that earns 4% interest every year. she plans to keep her money in there for 5 years
what would be the total interest Emma will earn after 5 years

Answer 1

To calculate the total interest Emma will earn after 5 years on her savings account, we can use the formula for simple interest:

\[
\text{Interest} = P \times r \times t
\]

Where:
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the annual interest rate (in decimal form),
- \( t \) is the time the money is invested or borrowed for (in years).

In Emma's case:
- \( P = 2000 \) dollars,
- \( r = 4\% = 0.04 \),
- \( t = 5 \) years.

Now, substituting the values into the formula:

\[
\text{Interest} = 2000 \times 0.04 \times 5
\]

Calculating this gives:

\[
\text{Interest} = 2000 \times 0.04 = 80
\]
\[
\text{Interest} = 80 \times 5 = 400
\]

So, the total interest Emma will earn after 5 years is **400 dollars**.