To calculate the total amount Tarah will have in her savings account after 3 years, we first need to calculate the interest earned using the formula:
\[ i = prt \]
where:
- \( p \) = principal (starting amount) = $80,000
- \( r \) = interest rate = 10% = 0.10 (as a decimal)
- \( t \) = time in years = 3
Now substituting the values into the formula:
\[ i = 80,000 \times 0.10 \times 3 \]
Calculating the interest:
\[ i = 80,000 \times 0.10 = 8,000 \] \[ i = 8,000 \times 3 = 24,000 \]
So the interest earned over 3 years is $24,000.
Now, to find the total amount after 3 years, we add the interest to the principal:
\[ \text{Total Amount} = p + i = 80,000 + 24,000 = 104,000 \]
Thus, the total amount Tarah will have in 3 years is $104,000.