Tenille made $2,000 on a summer job. She put it in a bank account paying simple interest of 5% annually. If Tenille lets her money earn interest for 10 years, how much will she have?(1 point)

Answer 1

To calculate the amount of money Tenille will have after 10 years with simple interest, we can use the formula for simple interest:

\[ A = P + I \]

where:

• \(A\) is the total amount of money accumulated after n years, including interest.
• \(P\) is the principal amount (the initial amount of money).
• \(I\) is the interest earned, calculated as \(I = P \times r \times t\).

In this case:

• \(P = 2000\) (the initial amount),
• \(r = 0.05\) (the annual interest rate as a decimal),
• \(t = 10\) (the number of years).

Now, let's calculate the interest first:

\[ I = P \times r \times t = 2000 \times 0.05 \times 10 \] \[ I = 2000 \times 0.5 = 1000 \]

Now, we can find the total amount by adding the interest to the principal:

\[ A = P + I = 2000 + 1000 = 3000 \]

So, after 10 years, Tenille will have $3,000.