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 answer

To calculate the total amount 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 after interest,
  • \( P \) is the principal amount (initial amount), and
  • \( I \) is the interest earned.

The interest earned can be calculated using the formula:

\[ I = P \times r \times t \]

where:

  • \( I \) is the interest,
  • \( P \) is the principal amount,
  • \( r \) is the annual interest rate (in decimal form), and
  • \( t \) is the time (in years).

In this case:

  • \( P = 2000 \)
  • \( r = 5% = 0.05 \)
  • \( t = 10 \)

Now, we can calculate the interest:

\[ I = 2000 \times 0.05 \times 10 = 2000 \times 0.5 = 1000 \]

Now, we can find the total amount \( A \):

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

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