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 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 after interest,
  • \(P\) is the principal amount (the initial amount of money),
  • \(I\) is the interest earned.

The interest \(I\) can be calculated using the formula:

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

where:

  • \(r\) is the annual interest rate (expressed as a decimal),
  • \(t\) is the time the money is invested or borrowed for, in years.

In this case:

  • \(P = 2000\) (the initial amount),
  • \(r = 0.05\) (5% annual interest rate),
  • \(t = 10\) (the number of years).

Now we can calculate the interest:

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

Calculating this:

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

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

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

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