Stephanie put $80 in her bank account when she was five years old. The bank gave her a simple interest rate of 2.1%. Does she have enough money to buy a TV for $1,000 after leaving her money in the bank for 10 years?

Question

Mathematics

Isabell Hogan

12 December, 05:07

Stephanie put $80 in her bank account when she was five years old. The bank gave her a simple interest rate of 2.1%. Does she have enough money to buy a TV for $1,000 after leaving her money in the bank for 10 years?

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Answers (1)

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Lina · Answer 1

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount deposited.

P represents the principal or amount deposited.

R represents interest rate

T represents the duration in years.

From the information given,

P = 80

R = 2.1%

T = 10 years

I = (80 * 2.1 * 10) / 100 = $16.8

The total amount that she would have after 10 years is

80 + 16.8 = $96.8

She wouldn't have enough money to buy a TV for $1,000