Answer:
$9800
Step-by-step explanation:
Use the formula for amount with simple interest: [tex]A = P(1 + rt)[/tex]
A is the final amount
P is the principal, meaning starting money
r is the rate of interest in decimal form
t is the time
First, convert the interest rate into decimal form by dividing by 100. This will be "r" in the formula.
8% ÷ 100 = 0.08 = r
We know time is 12 years. t = 12
We know she starts the account with %4000. P = 5000
Substitute P, r, and t into the formula.
A = P(1 + rt)
A = 5000(1 + (0.08)(12)) Solve inside the brackets first
A = 5000(1 + 0.96)
A = 5000(1.96) Multiply
A = 9800 Final answer
Anna will have $9800 after 12 years.
