enille 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?
The formula for calculating simple interest is:
Simple Interest = Principal × Rate × Time
Principal refers to the initial amount of money, which is $2,000 in this case.
Rate refers to the interest rate, which is 5% or 0.05.
Time refers to the number of years, which is 10.
Plugging the values into the formula:
Simple Interest = $2,000 × 0.05 × 10
= $2,000 × 0.5
= $1,000
Tenille will have $1,000 in interest after 10 years. Adding the interest to the initial amount:
Total amount = Principal + Simple Interest
= $2,000 + $1,000
= $3,000
Therefore, Tenille will have $3,000 after 10 years.