To calculate the total amount Savannah will have in 5 years, we will first calculate the interest earned using the formula \(i = prt\), where:
- \(p\) = principal (starting amount) = $49,994
- \(r\) = interest rate = 1% = 0.01 (as a decimal)
- \(t\) = time in years = 5
Now, applying the formula:
\[ i = prt \] \[ i = 49,994 \times 0.01 \times 5 \] \[ i = 49,994 \times 0.05 \] \[ i = 2,499.70 \]
Now, we'll calculate the total amount Savannah will have after 5 years by adding the interest to the principal:
\[ \text{Total Amount} = p + i \] \[ \text{Total Amount} = 49,994 + 2,499.70 \] \[ \text{Total Amount} = 52,493.70 \]
Therefore, Savannah will have a total of $52,493.70 in 5 years.