Trevor has 99,718 in a savings account the interest rate is 12% per year and is not compounded to the nearest cent how much will she have in total in 5 years round your answer to the nearest cent

1 answer

To calculate how much Trevor will have in her savings account after 5 years with a simple interest rate of 12% per year, we can use the formula for simple interest:

\[ A = P + (P \times r \times t) \]

Where:

  • \( A \) is the total amount of money after interest
  • \( P \) is the principal amount (initial investment)
  • \( r \) is the interest rate (as a decimal)
  • \( t \) is the time in years

Given:

  • \( P = 99,718 \)
  • \( r = 12% = 0.12 \)
  • \( t = 5 \)

First, calculate the interest earned over 5 years:

\[ \text{Interest} = P \times r \times t = 99,718 \times 0.12 \times 5 \]

Now calculate that step-by-step:

  1. Calculate \( 0.12 \times 5 \): \[ 0.12 \times 5 = 0.6 \]

  2. Then calculate the interest: \[ \text{Interest} = 99,718 \times 0.6 = 59,830.8 \]

Now, add the interest to the principal to find the total amount:

\[ A = P + \text{Interest} = 99,718 + 59,830.8 = 159,548.8 \]

Finally, rounding to the nearest cent:

\[ A \approx 159,548.80 \]

So, Trevor will have approximately $159,548.80 in total after 5 years.