To find the total amount that Trevor will have in 5 years with an interest rate of 12% per year that is not compounded, we can use the formula for simple interest:
\[ \text{Total Amount} = \text{Principal} + (\text{Principal} \times \text{Rate} \times \text{Time}) \]
Where:
- Principal = $99,718
- Rate = 12% per year = 0.12
- Time = 5 years
Now, plug in the values:
- Calculate the interest earned over 5 years:
\[ \text{Interest} = 99,718 \times 0.12 \times 5 \] \[ \text{Interest} = 99,718 \times 0.6 \] \[ \text{Interest} = 59,831.80 \]
- Now, add the interest to the principal to get the total amount:
\[ \text{Total Amount} = 99,718 + 59,831.80 = 159,549.80 \]
Therefore, to the nearest cent, Trevor will have $159,549.80 in total in 5 years.
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